Burke,  Margaret  Sullivan 
Story  of  Hercules 


DUKE 

UNIVERSITY 


LIBRARY 


Digitized  by  the  Internet  Archive 
in  2016 


https://archive.org/details/storyofherculeso01  burk 


o 


o 


o 


o 


J o 


'he  Story  of  H^cui/es, 


ITH  MOOT  THE  PIIJIICISL  LEGISUTIOM  [ 

OF  THE^REPUBLIC^  PARTY. 


BY  MARGARET  SULLIVAN  BURKE. 


Pbice — Post  paid ; Single  copy,  15c ; two 
copies,  25c  ; ten  copies,  §1.00 ; Special  prices 
on  larger  quantities. 

Address  all  orders  to  the  Author,  1602  Fif- 
teenth Street,  N.  W.,  Washington,  D.  C. 


O 


O 


O 


O 


O 


▼ W’ 


DEDICATION. 


It  may  be  well  to  dedicate  to  the  dead,  a wor 
which  is  as  replete  with  dead  issues  and  misstah 
ments  as  one  that  has  been  pirblished  under  th 
auspices  of  the  Populist  Party,  that  is  doing  no  en 
of  mischief  by  its  misleading  fabrications.  But  a 
for  me,  proud  in  the  consciousness  that  I am  dealin 
with  the  living  issues  of  the  day,  and  that  I have  mis 
represented  nothing,  and  nothing  extenuated,  an 
that  the  Archives  of  my  Country  will  prove  it, 
desire  to  dedicate  this  little  work  to  the  very  lives 
thing  I know,  the  Republican  Party. 


FT 


352,.t>‘?73 


PREFACE. 


I do  not  believe  much  in  prefaces,  because  they 
ire  usually  in  the  nature  of  an  apology;  and  I have 
lo  excuse  to  otfer  for  writing  this  little  pamphlet. 

!I  will  only  say,  therefore,  that  to  the  very  best 
»f  my  ability  T have  built  every  statement  therein 
ipon  the  sure  foundation  of  public  records,  which 
ire  free  for  all  to  examine.  I have  not  taken  one 
single  fact  from  hearsay,  but,  with  the  Financial 
jaws  before  me,  and  the  reports  of  their  operation 
pll  these  years  to  show  the  effect  of  their  enforc 
pient,  at  my  side,  I have  seen  for  myself  the  t 
truth,  and  I have  given  it  without  bias, 
i M.  S. 


CONTENTS. 


Chapter  1. — Introducing  our  Modern  Hercu- 
les, The  Republican  Party 1 

Chapter  2. — His  First  Work — The  Exception 

Clause 13 

Chapter  3.— Labor  Second — The  National 

Bank  Act 21 

Chapter  4. — Exploit  Third — Contraction  that 

did  not  Contract 36i 

Chapter  5. — Fourth  Achievement — An  Act 
to  Strengthen  the  Public 

Credit 50 

Chapter  6.— Feat  Fifth — Refunding  the  Debt..  58 
Chapter  7.— Sixth  Deed  of  Valor— The  Coin- 
age Act 67 

ter  8. — Seventh  Triumph — The  Resump- 
tion of  Specie  Payments 77 

9. — The  Poisoned  Tunic — Inflation 

of  the  Currency 84 

— An  Appendix  but  not  a Supple- 
ment  01 


CHAPTER  I. 


PRODUCING  OUR  3IODERX  HERCULES,  THE  RE- 
PUBLICAN PARTY. 

Of  all  the  heroes  of  ancient  times,  Ilerenles  hears 
le  palm  as  the  working  hero,  and  his  twelve  won- 
brful  labors  have  been  rehearsed  in  song  and  .story 
11  most  of  the  world  is  familiar  therewith. 

I The  affairs  of  a great  nation,  when  I'ightly  con- 
ducted, are  labors  worthy,  not  only  of  a hero  like 
Hercules,  but  of  the  whole  Olympian  fraternity  of 
ods  put  together,  and  with  all  his  strength  and 
isdom,  the  labors  of  t!ie  aforesaid  heathen  deity 
;em  puny  indeed  when  compared  with  tlie  work 
f our  modern  Hercules,  the  Repuldican  party. 
But,  alas ! As  it  was  a woman  who  attemiied  the 
estruction  of  this  ancient  hero,  so,  history  repeat- 
ig  itself,  a woman  has  been  found,  even  in  this 
.lore  enlightened  day,  to  send  Iier  serpants  of  soph- 
3try  and  detraction  to  sting  to  death,  if  possible, 
be  giant  power  that  saved  our  countrj'  from  the 
angers  of  the  past,  and  set  it  upon  a sure  founda- 
lon.  But,  thanks  to  the  briglit  spirit  of  truili,  he 
.'ill  still  be  able  to  crush  them. 

( Dropping  metaphor,  I desire  to  call  the  attention 
jf  Republicans  everywhere  to  the  cunningly  de- 
dsed  sophisms  of  a new  party  lately  sprung  up 
com  nothing,  like  a mushroom  in  the  night.  They 
lave  issued  numerous  pamphlets,  in  which  tliey 
lindly  attack  the  grand  work  of  the  master  minds 
f the  time,  simply  because  their  own  ignorance  is 
o dense  that  they  can  not  understand  the  same. 


1 


2 


Their  chief  work  on  this  subject  being  TSTitten  ity 
a woman  deserves  attention,  because  had  a man 
been  the  author,  one  need  not  look  far  for  the  true 
inwardness  of  the  whole  matter,  for,  since  the  time 
when  Adam  tried  to  deceive  his  I\Iaker,  men  will 
labor  to  prove  that  black  is.  white  when  they  have 
an  end  to  serve,  not  in  the  least  deterred  either  by 
the  hopelessness  of  the  task.  But  the  fact  that  a 
woman  is  the  author  of  the  screed  proves  that  some 
may  honestly  see  with  the  obliquity  of  vision  that 
would  make  black  seem  white  from  a negative 
stand-point,  for  women  are  honest  if  not  always 
wise. 

Tins  party,  which  is  maele  up,  principally,  of  peo- 
ple all  unlearneel  in  matters  of  the  kind,  have  pre- 
sumed to  criticise  tlie  great  financial  acts  of  om 
modern  Hercules,  the  Republican  Party,  thatsavee 
our  country  from  the  Stymphalides — a monster  o 
slavery,  treason,  rebellion,  and  war,  feeding  oi 
human  fiesh — and  placed  it  on  the  basis  of  solic 
growth  and  prosperity. 

The  very  first  statement  in  this  book  of  thei 
faith  is  so  glaringly  untrue  that  one  can  bpt  won 
der  where  this  female  Rip  Van  Winkle  has  beei 
sleeping  all  this  while,  to  know  no  better.  It  is  thi 
tale  of  a supposed  “ infamous  plot  ” tliat  resultet 
in  our  civil  war,  making  the  charge  that  there  wa 
nothing  in  the  condition  of  the  masses  of  our  peo 
pie  that  denoted  prosperty,  but  rather  a tendenc’ 
to  poverty  and  demoralization. 

Remember  this  was  written  four  or  five  year: 
ago,  at  the  time  of  our  highest  prosperty,  whoi 
under  the  benign  infiuence  of  a protective  taril 
party,  new  industries  were  springing  up  all  ove- 
the  land  ; and  is  especially  adapted  to  the  work  o 


3 


iTOselyting  ignorant  voters,  because  it  appeals  to 
leir  sensibilities,  rather  than  their  sense. 

Now  turn  the  glass  of  time  backward  forty  years 
nd  behold ! How  was  it  then  with  the  middle 
lasses  ? The  children  were  taught  “ the  three  R’s,” 

; is  true,  and  most  of  them  learned  to  work  ; but 
inhere  were  tlie  schools  and  colleges  of  to-day? 
Vhere  the  culture  of  the  boys,  and  accomplishments 
f the  girls?  A lass  who  could  drum  on  the  piano 
hen  was  thought  a wonder,  and  to  think  of  owning 
!ie  instrument  was  the  wildest  extra ^'agance ; whole 
3wns  could  only  boast  of  one  or  two  each.  Calico 
ras  the  regulation  fabric  for  the  girl’s  gown,  and 
er  beau  matched  it  in  jeans.  Tlie  parlor — it  was 
nly  “the  front  room”  then — was  carpeted  Avith  a 
i^ondrous  construction  of  strips  of  rag  and  coarse 
Avine,  and  the  rest  of  the  furnishing  Avas  made  to 
orrespond.  The  men  labored,  on  an  aA  crage,  for 
lalf  a dqllar  per  day,  and  the  women  did  their  oAvn 
vork.  Nobody  starved,  it  is  true,  because  CA'ery- 
i)ody  Avorked  and  did  not  care  to  keep  up  the  styles, 
md  in  this  respect  the  conditions  haA’e  not  perma- 
lently  changed,  although,  tlie  control  of  the  goA’’- 
!rnment  haA  ing  since  gone  into  the  hands  of  those 
s'ho  are  unfriendly  to  a protective  tariff,  many  of 
hose  industries  mentioned  above  haA'e  suspended 
)eeause  they  could  not  go  on  manufacturing  in  the 
lark  Avares  that  might  be  subject  to  competition 
[Vitli  the  product  of  the  under-paid  labor  of  Europe, 
yithout  cutting  Avages  doAvn  to  a figure  that  At-ould 
fifford  no  American  household  subsistence. 

People  Avho  are  Avilling  to  Avork  in  America  sel- 
loni  stai'A^e,  and,  on  the  other  hand,  almost  iiiA^ar- 
Jably  live  Avell ; and  yet  it  is  true  that  we  find  dis- 
pontent  and  dissatisfaction  on  all  sides,  and  the 


4 


very  fullness  of  our  prosperity  is  responsible  for 
that,  ill  a measure;  for  the  more  people  have  che 
more  they  ivant,  and  with  natural  indolence  andi 
the  bad  advice  of  communistic  theorists,  there  arc 
sure  to  be  some  always  Avho  will  go  to  the  wall, 
while  their  frugal,  industrious,  managing  neigh- 
bors heap  up  the  riches  that  they  envy  Thiis, 
abundance  is  not  denied  to  those  who  produce  it,, 
but  to  the  tramps  who  idle  on  the  highways,  while 
those  producers  seek  in  vain  for  efficient  laborers! 
to  help  them. 

Inlinite  variety  is  the  bright  background  of  hu- 
manitjs  and  while  the  old  world  jogs  along  there 
will  be  a dilfercnce  in  men  ; some  will  make  a goodi 
living  while  others  would  starve  to  death,  withoub 
help;  but  how  can  the  country  that  offers  its  op-- 
portunities  freely  to  all  be  held  responsible  foe 
that? 

What  is  the  reason  that  halt  the  worlcLis  over-- 
worked,  while  the  other  half  is  idle?  Let  me  tell 
you  the  secret ; it  is  because  everybody  is  after  the ' 
efficient  worker,  and  he  therefore  has  more  than  he ' 
can  elo,  while  nobody  wants  the  “botch,”  anel  he' 
goes  unemployeel,  anel  cries  against  the  injustice  o:‘ 
his  thorough  neighbor,  who  enjoys  the  fruits  o:‘ 
intclligemt  labor.  The  unequal  elistribution  of  the: 
jn-oducts  of  labor  is  usually  in  exact  ratio  with  the  ■ 
uneriual  exertions  of  the  parties  concerneel,  aidcii 
largely,  of  course,  by  the  inequality  e>f  their  intel  - 
ligence. 

If  millionaires  are  not  indigenous  to  Americai 
soil,  as  these  people  facetiously  proclaim,  neither 
are  factories,  railroads,  nor  any  other  of  the  myriac, 
of  business  enterprises  that  have  brought  wealtl: 
to  some  : while  the  other  some,who  have  not  erectec 


5 


lie  factories,  railroads,  etc.,  are  uot  millionaires. 
^The  laborer  is  worthy  of  his  hire,”  and  if  a man 
larns  money  by  his  labor,  or  business  enterprise,  I 
lo  not  .see  why  he  should  not  possess  it. 

! And  right  here  let  me  drive  a peg  upon  which 
iais  third  party  may  hang  mistake  number  one 

I ‘'Ire  civil  war  was  the  outcome  of  a disregard  to 
lis  very  jn'inciple  by  a portion  of  our  country, 
he  laborer  in  the  “ good  old  ante-bellum  days  ” 
id  not  receive  his  hire,  for  the  man  who  smoked 
is  pipe  in  idleness  on  the  broad  southern  veranda 
oled  out  to  him  a pittance  only  of  it,  his  slice  of 
aeon  and  bucket  of  meal  each  day,  although  the 
ranaries  he  had  tilled  were  indeed  bursting  with 
je  fruits  of  the  poor  slave’s  labor.  That  slave  to- 
ay  is  respectably  clothed,  and  lives  in  a conifort- 
ble  home,  whenever  he  has  the  good  sense  to  work 
alf  as  hard  for  himself  as  he  once  was  driven  to 
o for  hig  master ; and  all  this  he  owes  to'the  Re- 
ublican  party.  Colored  Democrats  remember 
hat. 

With  a country  filled  by  such  possibilities  as  ours, 
would  be  strange,  indeed,  if  there  were  no  niil- 
onaires ; and  we  will  have  idle  vagabonds  to  create 
iots  just  as  long  as  we  have  the  Popidist  Party  to 
Ireacli  anarchy  on  the  floor  of  the  .Senate,  as  well 
■ s in  campaign  documents.  But  even  if  visionaries 
f that  stamp  could  bring  about  this  equitable  (? ) di- 
■ isionof  our  moneys,  hownmeh  would  each  person 
ave,  do  you  suppose?  Well,  I will  tell  you.  The 
’honey  in  circulation  at  present,  equally  divided, 
’muld  give  each  man,  woman,  and  child  §24.19,  and 
^ll  the  money  in  the  Treasury  added  would  only  raise 
to  §:15.05.  Not  much  of  a fund  upon  which  to  go 
ito  business,  is  it?  But  even  could  we  hit  on  some 


6 


plan  by  which  we  could  establish  a sort  of  rotation 
in  office,  loaning  each  man  in  turn,  as  capital  to 
start  in  business  all  the  funds  of  the  country  for  a 
reasonable  time,  with  the  privilege  of  retaining  all 
the  ijrolits,  the  conditions  would  be  exactly  the 
same  as  they  are  now  inside  of  fifty  years,  and 
some  men  would  not  be  able  to  pay  back  the  loan ; 
and  this  state  of  things  will  exist  just  as  long  as 
variety  is  the  foundation  of  nature,  and  some  men 
are  intelligent,  managing,  and  industrious,  while 
others  are  ignorant,  shiftless  and  lazy  ; and  the  great 
law  of  “the  survival  of  the  fittest”  will  so  adjust 
tlie  balance  that  the  world  will  still  maintain  its 
equilibrium  in  spite  of  tlie  cranks.  And  where  is 
there  another  nation  in  which  the  chances  are  even 
as  equally  divided,  with  all  our  inequalities,  as  they 
are  in  our  country  after  all? 

The  Republicans  had  come  into  power,  an  infant 
party,  to  find  already  laid  upon  their  shoulders  tlie 
burden  of  a large  debt,  the  mongrel  otfspring  of  an 
illicit  union  of  tlie  Democratic  party  of  America, 
and  tlie  English  Coliden  Club. 

Polk  had  been  victorious  under  a tariff  lianner, 
leading  the  people,  who  really  desired  protection, 
with  the  delusive  cry  of  “Polk,  Dallas  and  tlie 
Tariff  of  ’42,”  but  as  soon  as  lie  was  installeii  in 
office,  with  a Democratic  Senate  and  House  at  his 
back,  the  tariff  of ’42  was  repealed,  the  professed 
protection  chamiiion,  George  M.  Dallas,  furnishing 
the  casting  vote  on  the  question  of  its  engrossment, 
in  the  equally  divided  Senate  ; and  this  law  was 
maintained  until  ISfil. 

Of  course  there  soon  was  not  enough  revenue,  for 
not  only  did  foreign  supplies  come  in  williout  con- 
tributing anything  to  keep  up  the  exjienses  of  the 


I 

r narket  where  they  sold  their  goods,  but  our  own 
I factories  and  workshops,  that  might  have  yielded 
, )oth  property  and  income  tax/^vere  closed  down, 
ind  they  had  neither  property  nor  income  to  tax  ; 
j so  Buchanan  was  obliged  to  ask  a loan  to  pay  tlio 

Inirrent  expenses  of  his  outgoing  administration. 
The  Secretary  of  the  Treasury,  Howell  Cobh,  in 
lis  report  on  the  finances,  dated  December  22, 1859, 
lad  estimated  that  there  would  be  a balance  in  the 
1 [Treasury,  Jmie  30,  1861,  of  only  $3,530, 196'C1,  which 
s eft  no  margin  for  additional  appropriations.  The 
i mblie  debt  amounted  to  nearly  $60,000,000.  The 
, Secretary,  in  a spasm  of  patriotism,  expressed  him- 
, self  to  the  effect  that  the  idea  of  increasing  the  pub- 
ic debt  to  meet  the  ordinary  expenses  of  the  Gov- 
ernment should  not  be  entertained  for  a moment, 
and  suggested  the  tariff  as  the  way  out  of  the  difii- 
bulty.  But  Democracy  was  joined  to  its  idols,  and 
eonld  not  bow  down  to  this  new  god,  even  under 
such  desperate  circumstances;  and  inasmuch  as  they 
had  been  steadily  increasing  that  debt  during  the 
: whole  of  the  administration, till  the  sum  total  amout- 
ed  to  an  increase  of  $47,404,426.70,  they  could  not  be 
expected  to  be  very  squeamish — and  this,  too,  in  a 
time  of  peace  under  a tariff’  that  actually  discrion'- 
nated  against  our  own  people,  as  under  its  work- 
ings we  paid  $100,000,000  abroad  for  every  $15,000,000 
pf  revenue  collected  at  home. 

: Xo  wonder,  then,  that  the  President  failed  to  bor- 
row, under  the  act  approved  June  22, 1860,  as  shown 
by  the  records  of  the  Treasnry,  the  very  moderate 
sum  of  $21,000,000  on  the  credit  of  the  United  States 
lat  an  interest  not  to  exceed  six  per  cent.,  and  only 
siicceeded  in  raising  the  pitiful  sum  of  $7,022,000,  at 
live  per  cent. 


s 


In  desperation  Secretary  Cobb,  in  his  report,  Dec 
4,  1860,  cried  aloud  after  tliis  fashion : “ The  condi 
tion  (jf  the  Treasury  is  such  that  no  serious  dela; 
can  be  indulged.”  He  thereupon  recominendec 
that  autliority  be  given  for  issuing  Treasury  notes 
to  be  negotiated  at  such  rates  as  would  cominanc 
the  confidence  of  the  country,  adding : “ To  ere 
ate  that  confidence  I recommend  that  the  pulAh 
lands  he  unconditionally  pledged  for  the  ultimati 
redemption  of  all  the  Treasury  notes  which  it  mai 
become  necessary  to  issue."  A mortgage  on  the 
country,  you  understand ; although  this  did  no 
actually  occur;  notwithstanding  that,  on  this  rec 
ominendation  of  tlie  Secretary  of  the  Treasury  i 
was  attempted  in  the  House,  and  ojily  pi’eventec 
because  it  would  have  interlered  with  the  home- 
stead bill  then  under  discussion.  And  like  Ban- 
quo’s  ghost  we  have  this  very  same  old  idea  now 
haunting  the  members  of  tlie  Populist  Party.  Thej 
would  issue  unlimited  greenbacks,  but  they  wouki 
peril  the  American  homestead  thereby. 

The  loan  was  finally  negotiated  without  this  neu 
departure,  but  only  liy  paying  the  luggest  interest 
rate  ever  allowed  before  or  since.  Under  the  act  ol^ 
December  17,  18(30,  .810,010,900  was  issued  at  intere.st 
ranging  from  6 to  12  per  cent.  It  was  under  this  act 
that  lo  to  .36  per  cent  was  asked,  and  no  wonder, 
wlien  such  a state  of  aft'airs  existed. 

But  the  credit  of  the  Government  was  so  low  at  this- 
time  tliat  the  secretary,  then  John  A.  Dix,  suggested 
in  a letter  to  the  Ways  and  Means  Committee,  dated 
.Tan.  IS,  1861,  that  the  several  States  be  asked  tr 
pledge  the  deposits  received  by  them  from  the  Gov- 
ernment under  the  act  for  the  distribution  of  the 
surplus  revenues  in  1836;  for  there  was  an  actual 


9 


deficit  in  the  revenues  of  821,677,524,  with  a defi- 
ciency, also,  of  §24  000,000  asked  for,  and  these  vere 
sold  at  a discount  of  nearly  11  per  cent.,  in  a time 
Df  peace,  too,  to  get  cash  to  pay  the  debts  of  the  out- 
going administration,  for  which  a free  trade  policy 
provided  insuliicient  revenue,  instead  of  the  pre- 
mium our  bonds  command  now,  and  have  com- 
manded ever  since  the  Republican  Party  came  into 
po\ver ; for  at  the  extra  session  of  Congress  called 
July  4,  1661,  only  six  months  after,  with  eleven 
^tates  in  rebellion,  the  Republican  Administration 
found  it  easy  to  obtain  almost  8400,000,000,  because 
jihe  monied  people  of  tlie  Rorth  saw  the  necessity 
pf  contributing  their  means  to  save  the  Nation  ; no 
particular  patriotism  in  that,  for  self-preservation 
,s  the  first  law  of  nature. 

Of  this  sum  8189, .321,350,  at  six  per  cent.,  sold  at 
par  ;860,030,000  old  demand  notes,  with  no  interest, 
it  par  also,  and  8139,999,950,  at  7 3-10  per  cent,  in- 
lerest— t/(e  highest  ever  paid  by  a Republican  Ad- 
ninistraiion — actually  sold  at  a premium  of  465 
^ne-thousandths  of  one  per  cent.,  with  war  really 
jegun. 

Wliat  an  awful  “ Shylock  ” was  that,  for  this  is 
he  way  the  American  banker  “ took  advantage,” 
yith  the  war  threatening  to  wipe  the  whole  of  it 
,way  ; and  the  above  is  the  pretty  name  these  vili- 
iers  give  to  the  people  who  loaned  monej"  to  the 
Jovernment  to  help  in  this  emergency.  But 
pstory  will  vindicate  the  character  of  the  men  who 
isked  their  means  on  the  chances  of  war,  and  thus 
felped  to  save  the  country.  Tliey  turned  a river  ot 
fold  into  the  Augean  stable  where  wrong  doing 
tnd  false  principles  had  herded,  and  swept  away  all 
ts  foul  pollutions. 


10 


It  is  not  usury,  but  business  all  the  world  ovei 
to  receive  for  one’s  loans  a rate  of  interest  com 
inensurate  witli  a risk  of  losing  the  whole.  An' 
what  security  had  our  Government  to  offer  inthos- 
days,  with  10,244,114  of  her  people  in  open  rebellioi 
and  2,  145,348  of  the  money  producers,  among  tb 
loyal  ones,  taken  from  their  shops,  offices,  facte 
ries,  and  other  wealth-producing  occupations  to  d( 
fend  her  against  these  fratricidal  children,  but 
possibly  bankrupt  future  ? 

I am  making  no  defence  of  Wall  Street,  for 
may  be  that  somewhere  in  the  pages  of  histoi 
there  is  recorded  a case  of  such  sublime  patriotisi 
as  a man,  or  a set  of  them,  who  deliberately  impo’ 
erished  themselves  for  the  sake  of  their  country 
but  I confess  that  I have  not  been  able  to  find  i 
and  I am  inclined  to  think  it  nothing  but  huma: 
after  all,  to  follow  that  first  law  of  nature.  I( 
not  know  exactly  how  large  the  lieam  in  my  o« 
eye  would  have  been  under  those  circumstance  i 
and  so  I will  just  let  my  brother’s  little  mo 
alone. 

While  Republicans  managed  our  finances  the 
was  never  a dollar  sold  at  a discount,  either  in  lie 
of  peace  or  war,  a pretty  good  indication  of  t 
confidence  in  their  integrity  accorded,  not  only  1 
our  own  people,  but  by  the  world  at  large  ; an  i 
tegrity  that  woukl  not  stoop  to  rob  those  wl 
trusted'  it ; and  yet  they  came  into  power  on  the  e 
of  war,  ^vith  a bankrupt  treasury  and  a luortgagi 
country,  the  mongrel  jirogeny  of  Democracy  ai 
Free-trade,  before  mentioned,  that  was  left  for  t 
new  party  to  dispose  of,  bind  out,  or  send  to  t 
reform  school ; a result  brought  about  by  an  ol 
experienced  party,  and  left  on  the  eve  of  war 


11 


encumber  this  new  and  untried  power.  But  they 
met  every  obligation  like  men,  and  with  the  former 
four  years  of  the  Cleveland  Administration— that 
at  least  did  them  no  good— counted  out,  they 
Ijrought  us  up  to  March  4,  1893,  when,  with  an  ag- 
gregate of  $764,322,266.78  cash  in  the  Treasury,  of 
which  $217,672,947.91  was  gold  coin  and  bullion, 
they  had  our  debt  so  arranged,  with  a minimum 
interest,  too,  that  it  could  be  easily  paid  by  the  for- 
eign revenues  of  the  country  as  it  fell  due ; and 
without  repudiating  the  claims  of  our  own  people 
for  pensions,  improvements,  etc.,  if  the  marplots 

Iwoidd  have  let  our  r-evenues  alone.  This  was,  how- 
ever, almost  too  much  to  expect,  with  the  Govern- 
ment turned  over  “ soul,  body,  and  breeches,”  by 
the  foolishness  of  the  people,  to  its  enemies  ; and 
where  the  bullet  failed  to  ruin  the  country,  the  bal- 
lot may  be  more  effectual.  They  wanted  a “ change,” 
and  it  begins  to  look  like  they  had  gotten  it  with  a 
vengeance.  But  I want  to  enter  my  protest  here, 
and  now,  (.July  2S,  1894),  against  the  cowardly  at- 
tempt that  is  being  made  to  shift  the  blame  from 
1 the  shoulders  to  which  it  legitimately  belongs,  to 
I those  whose  wise  legislation  in  the  past  has  lifted 
them  above  such  a charge. 

Abraham  Lincoln  was  inaugurated  March  4, 1861. 
Both  Houses  were  Republican.  This  was,  how- 
ever, not  such  a rose-colored  state  of  affairs  for  that 
party,  as  it  would  be  under  ordinary  circumstances, 
for  their  almost  two-thirds  majority  in  Senate  and 
House  was  largely  brought  about  by  the  secession 
of  the  eleven  Southern  States,  before  referred  to, 
which  of  course  cut  the  Democratic  representation 
down,  for  although  all  Democrats  were  not  rebels, 
all  rebels  were  Democrats  during  the  Civil  War. 


12 


With  theii'  ranks  thus  depleted  and  the  war  upo' 
them,  they  actually  held  their  first  session  in  a mil 
itary  camp,  when  an  extra  session  was  called  Jul; 
4 — Independence  Day,  take  notice — 1801. 

The  day  before  that  session  adjourned  Abrahan 
Lincoln  wrote  that  now  illustrious  name  at  the  hot 
tom  of  a new  protective  tariff  measure,  one  of  tlr 
first  great  acts  of  an  administration  full  of  event 
ful  situations. 


CHAPTER  II. 


HIS  FIEST  WORK — THE  EXCEPTIOX  CLAUSE. 

When  Congress  convened  in  regular  session,  Dec. 
9,  IStil,  it  was  found  how  far  short  even  the  wildest 
I estimate  had  heen  of  tlie  necessities  of  war,  and  it 
was  then  that  the  legal- tender  greenback  was  intro- 
duced. It  was  absolutely  necessary  to  have  money 
tliat  would  be  good  for  all  debts,  public  and  private, 
but  it  was  a dangerous  proceeding  to  make  this 
paper,  with  no  intrinsic  value  of  its  own,  good  for 
debts  that  might  come  diie  after  the  money  had  be- 
come valueless.  The  Continental  Currency,  for  in- 
stance, had  been  a partial  legal  tender  by  enaet- 

Iment  of  all  tlie  States  except  Rhode  Island ; and 
George  Washington  was  obliged  to  receive  it  at  par 
in  payment  of  debts,  when  its  value  had  depreciated 
to  next  to  nothing. 

Our  legislators  took  the  risk,  however,  and 
issued  §450,000,000  of  them,  lifty  millions  to  be  in 
lieu  of  the  old  demand  notes,  so  called  because 
they  were  payable  on  demand  (payable  in  coin 
by  the  way),  which  have  been  paraded  so  by  our 
Populist  friends,  because,  as  they  say,  they  were 
on  a level  with  gold,  and  “ the  millionaire  took 
his  liat  otf  to  them,  while  the  banker  made  obeis- 
ance.” The  millionaire  of  our  own  land  may  have 
had  a great  deal  of  respect  for  them,  it  is  true,  but 
the  inillionaii-es  of  Europe  were  not  built  on  that 
plan.  They  had  seen  too  many  governments  rise 
and  fall  to  have  an  overwhelming  amount  of  faith 
in  a new  country  like  ours,  thus  divided  against 


13 


14 


itself,  “promising  to  pay”  with  nothing  behind  the 
promise  tjut  a country  at  war  among  themselves. 
How  could  they  know  what  the  result  of  that  war 
would  be  ? They  inclined  to  believe  that  the  Gov- 
ernment would  be  overthrown,  in  fact,  and  how 
much  Avould  this  paper  money  be  worth  then,  that 
was  made  legal  tender  for  all  debts  public  and 
private?  So  Europe  looked  askance  at  our  green- 
Ijacks.  They  did  not  want  to  accept  money  on  such 
uncertainties.  Gold  alone  would  bolster  our  credit 
there.  It  is  true  these  notes  paid  the  soldier,  fur- 
nished his  equipments,  and  gave  a new  impetus  to 
commerce  also,  and  to  people  of  shallow  under- 
standing it  would  seem  that  the  government  might 
have  gone  on  issuing  them  ad  libitum,  but — and 
there  always  is  a “ but”  to  folly — our  importations 
had  to  be  paid  in  coin  values,  and  unless  the  duties 
on  the  same  were  demanded  in  coin,  also  our  green- 
backs would  soon  have  been  at  the  disadvantage  ot 
an  unjust  discrimination  wliich  would  have  lessen- 
ed their  purchasing  power  constantly,  and  thus  di- 
minished the  duties  also  ; and  with  every  issue  of 
these  notes  they  would  have  decreased  in  value, 
and  tile  rate  of  interest  would  have  increased,  till 
our  paper  would  have  been  about  as  v.aluable  as 
the  old  Continental  Currency,  or  the  Confederate 
s]unplastcr,viz:  two  cents  per  pound  as  paper  rags. 
And  as  our  Government  had  always  made  it  the 
custom  to  pay  the  interest  on  our  bonds  in  coin,  be- 
cause never  before,  in  the  history  of  the  country, 
had  anything  else  been  legal  tender,  they  had  never 
thought  of  any  other  medium  ; and  during  the  time 
that  tliis  was  the  case,  the  government  had  slioiil- 
dered  certain  obligations,  which  the  party  of  the 
other  part  entered  into,  witli  the  understanding 


15 


that,  of  course,  they  would  be  paid  in  coin,  i)ecause 
there  Avas  no  other  legal  tender.  Congress  had  no 
right,  therfore,  to  pass  a bill  making  paper  legal  ten- 
der without  this  very  exception  clause ; but  to  make 
it  understood  that  this  custom  would  be  continued, 
notwithstanding  the  war,  it  was  thought  best  to 
put  a clause  in  the  act  of  Feb.  25,  1S62,  making  that 
declaration,  and,  at  the  same  time,  an  exception 
was  made  of  import  duties  also.  ■ This  terrible  Ex- 
ception Clause-^Populist  Conspiracy  number  one — 
the  great  mountain  made  out  of  a mole-hill  because 
those  learned  in  money  matters  were  consulted, — 
saved  our  public  credit,  by  making  our  bonds  mar- 
ketable abroad,  and  compelling  the  foreigner  to 
pay  the  fiddler  too,  by  requiring  him  to  pay  drrty 
on  his  imports  in  coin,  which  thus  provided  the 
means  of  paying  the  interest  of  our  bonds  in  coin, 
thus  satisfying  his  demands  out  of  his  own  pocket, 
giving  Diomedes  over  to  his  own  fire-breathing 
mares,  to  which  he  had  erstwhile  fed  the  flesh  of 
his  guests. 

In  this  case  honesty  was  not  only  the  best  policy, 
but  it  was  the  only  policy ; for,  if  the  interest  had 
not  been  paid  in  coin,  we  could  have  borrowed  no 
money  ; and  if  the  duties  had  not  been  paid  in  coin, 
we  would  have  had  no  coin  to  pay  the  interest  with. 

Was  it  a crime  that  our  native  creditors  were  put 
on  a level  with  the  foreigner?  Would  they  have  us 
supply  a different  kind  of  sauce  each,  for  goose 
and  gander?  If  there  was  any  advantage  gained 
by  the  Wall  street  broker,  et  al.,  there  certainly 
was  no  way  to  prevent  it.  The  country  was  in  vital 
need  of  money,  and,  therefore,  at  the  mercy  of  those 
who  had  money  to  lend ; but  it  is  no  use  for  those 
who  are  vociferating  against  the  government  to  in- 


10 


Hate  the  facts.  The  almost  fabulous  price  of  gold 
on  the  morning  of  .July  1, 1864,  is  attributed  by  them 
entirely  to  the  fact  that  gold  was  Unis  made  the 
medium  for  the  payment  of  duties  and  interest  on 
our  bonds. 

For  one  sin.rjle  dai/  only,  gold  was  at  a premium 
of  ®1.S5  per  cent.,  and  yet  these  buzzards  are  con- 
stantly representing  that  sum  as  quite  the  general 
thing.  They  do  not  lake  the  pains  to  tell  you  that 
the  premium  on  gold  dropped  35  cents  on  that  very 
day,  which  was  brought  about  bj’  an  act  passed  by 
those  “ dreadful  men  who  were  conniving  at  rob- 
bery,” passed  by  an  overwhelming  majority,  too. 

If  it  was  true  that  the  Exception  Clause  was  re- 
sponsible for  this  sudden  rise  in  gold,  how  are  we 
to  account  for  the  fact  that  it  was  higher  for  two 
months  before  that  act  was  passed  than  it  was  for 
two  months  after?  This  is  true,  however,  as  shown 
by  the  records  of  the  Treasury.  And  these  records, 
taken  in  conjunction  with  the  history  of  tlie  war  at 
that  period,  show  more;  they  show  that  all  the 
time  gold  lluctuated,  now  high,  and  then  low,  with 
the  tide  of  every  battle.  With  every  defeat  of  the 
Union  army  gold  wont  up,  with  every  success  it 
went  down  ; and  this  \vas  too  often  relocated,  alto- 
gether, to  lie  a mere  coincidence. 

For  instance,  the  victory  of  Grant  at  Fort  Donel- 
son  occurred  the  very  month  in  which  the  greenback 
act  was  passed,  and  gold  went  down  to  101.5,  in- 
stead of  np,  as  these  populists  claim.  But  in  the 
month  of  July  following,  McClellan  was  defeated 
after  seven  days’  battle  before  Richmond,  and  gold 
sprang  up  to  115.5.  In  December  General  Burn- 
side was  defeated  at  Fredericksburg,  and  gold  rose 
tol  32.3.  But  in  July  of ’63  came  Meade's  victory  at 


17 


Gettysburg,  and  Grant’s  capture  of  Vicksburg,  and 
do\vn  n cnt  gold  to  125.8.  Then  came  “ Old  Rosey’s  ” 
defeat  at  Chickamauga,  and  the  siege  of  his  army 
at  Chattanooga,  and  gold  went  up  with  a bound,  till 
it  sold  in  the  following  month  at  147.7.  In  May  of 
1864,  Grant  in  Virginia,  and  Sherman  in  Georgia, 
were  lighting  desperately,  but  making  slow  pro- 
gress, and  gold  still  went  up.  Grant,  after  a series 
of  dreadful  battles,  in  which  he  suffered  terrible 
lo.sses,  had  been  brought  up  with  a round  turn  be- 
fore Petersburg:  and  there,  owing  to  the  daily 
withdrawal  of  regiments,  which  had  served  their 
three  years,  he  seemed  likely  to  be  kept  for  an  in- 
definite period.  Sherman  was  making  slow  pro- 
gress toward  Atlanta,  and  Early  had  commenced 
the  movement  which  brought  him  within  four  miles 
of  the  capital ; foreign  intervention  seemed  more 
imminent  than  ev^er  before,  and  the  outlook  was 
dark  indeed,  in  the  month  of  July,  1864,  and  gold 
floated  on  the  billows  of  our  disaster  up  to  an  aver- 
age of  258.1.  But  in  September,  Sheridan’s  great 
victory  came  to  revive  our  hopes,  and  gold  fell  32 
cents  from  the  month  previous ; and  after  the  clos- 
ing scenes  of  the  rebellion  at  Appomattox  in  March 
and  April,  gold  took  a series  of  plunges  downward 
and  though  it  still  fluctuated,  as  public  confidence 
ivas  great  or  little  in  the  Congressional  battles  to 
.vhicli  our  interests  had  been  transferred,  it  never 
rose  so  high  again. 

The  unsophisticated  reader  is  left  in  the  dark  also 
ibout  another  experiment  of  our  legislators,  who 
vere  trying  ev^ery  means,  in  their  efforts  to  do  all 
hey  could  to  better  our  condition,  an  experiment 
hat  lasted  fifteen  days,  and  therefore  not  long 
nough  for  all  the  people  to  starve  to  death. 


18 


III  the  beginning  of  1864  the  war  had  come  to  a cr 
sis  where  the  result  was  so  doubtfnl  that  nothin 
else  was  certain  either.  Specie  payments  had  bee 
suspended  since  1.S61,  and  the  credit  of  the  Goveri 
mcnt,  represented  by  the  premium  on  gold  whe 
purchased  for  legal  tenders,  fluctuated,  as  I hav 
shown  at  the  result  of  every  battle  or  even  skii 
niish  of  the  two  armies.  The  average  price  of 
gold  dollar  in  greenbacks  in  January  was  31-> 
whicli  advanced  in  April  to  ^1.72.  Secretary  Chas 
believed  this  to  be  caused  by  a conspiracy  to  d< 
press  our  credit,  and  brought  the  matter  before  tli 
Finance  Committee  in  a letter  asking  the  enactmei 
of  a law  prohiliiting  speculation  in  gold,  or  in  othc 
words,  the  sale  of  gold  by  parties  who  liad  none  t 
sell.  He  admitted  that  there  was  a doubt  whethc 
the  bill  would  accomplish  the  desired  relief,  Th 
bill  passed  on  the  17th  of  June,  but  the  price  of  gol 
went  up  steadily,  and  the  excitement  became  s 
great  that  all  business  operations  were  tliro^vn  int 
confusion.  The  result  of  t’.ie  war  hung  tremblin 
in  the  balance,  and  it  took  very  little  to  turn  th 
scale.  Congress  was  snowed  under  by  petitions  fc 
the  repeal  of  the  law, -and  Congress  was  not  slow  t 
obey.  July  1,  gold  opened  at  ?2.85,  but  tliat  da 
was  the  last.  The  repealing  act  was  passed  by  t!i 
.Senate  almost  unanimously,  and  an  hour  later  ha- 
been  rushed  through  the  House  and  signed  by  tli 
President.  That  day  gold  dropped  35  cents  and  con 
tinned  downward. 

Tlie  men  of  Wall  street,  in  common  with  other 
wlio  had  gold  to  sell  on  that  day,  doubtless  rc 
ceived  the  market  price  for  it;  and  if  tliis  consti 
tutes  a Shylock,  I will  myself  be  compelled  to  cr; 
pcccavi.’  for  on  the  very  day  that  gold  reached  it 


19 


maxiimmi,  I remember  that  my  girlish  hoard  of 
' four  shining  dollars  brought  me  just  §11.40  in  pur- 
' chasing  shoes,  gown  and  back-comb,  those  things 
i so  dear  to  the  feminine  heart.  I wonder  if  any 
saintly  female  Populist  would  have  given  the 
whole  for  a four  dollar  pair  of  shoes  and  gone  with- 
out the  new  gown  and  back-comb,  because  the  sol- 
dier, who  had  nothing  but  greenbacks,  could  get 
but  one  hundred  cents  for  his  dollar?  And  how 
much  did  it  help  him,  do  you  suppose,  that  an  old 
lady  of  my  acquaintance,  who  had  a big  bag  of  gold 
at  the  same  time,  refused  to  do  as  I did,  and  held 
on  to  it  till,  like  fairy  gold,  it  had  almost  two-thirds 
of  it  melted  away? 

In  an  appendix  to  the  book  referred  to  before, 
which  is  written  by  one  of  the  author’s  “ indomi- 
table colleagues” — they  are  all  indomitable  in  that 
book,  by  the  way — which  appemlix,  by  a sort  of 
'mxitual  admiration  arrangement,  is  printed  in  the 
*'  twelfth  edition  thereof,  the  statement  is  made  that 
* Iwith  S50,0i)0  in  gold  a banker  could  buy  a §100,000 
^ bond,  which  is  a transaction  on  exactly  the  same 
“Iprinciple  ; because  at  that  time  the  stress  of  circuin- 
' stances  had  made  the  l)asis  of  our  values  unnatural. 

' The  farmer  received  §2.50  per  Inishel  for  his  wheat 
•*  hlso  ; but  when  the  time  came  for  the  bond  to  be  re- 
“ Heemed  his  ^-lOjOOO  in  gold  would  only  have  bought 
' a §50,000  bond,  for  the  war  was  over,  and  resump- 
tion  had  squared  the  values. 

I knew  a woman,  a poor  lodging-house  keeper  in 
I :his  city  a few  years  ago,  who  saved  a little  money, 
n She  heard  that  a valuable  piece  of  real  estate  was 
'!  ibout  to  be  sold  at  auction.  She  attended  the  sale  ; 
1 he  money  market  was  close,  the  weather  bad  that 
i lay,  i nd  so  there  were  not  many  bidders.  She  was 


20 


lucky  enough  to  hid  it  in  tit  a low  pidce,  the  fir; 
payment  just  her  “pile,”  and  before  the  next  paj 
inent  was  due  she  sold  the  property  at  four  timi 
what  she  paid  for  it,  paid  the  balance  due,  an 
pocketed  a small  fortune  as  her  profits.  It  was 
stress  of  circumstances  that  worked  in  her  favo 
and  not  any  sudden  change  in  the  real  value  of  th 
property  that  gave  her  this  advantage. 

From  the  Wall  street  banker  to  the  huckster  in  on 
market  places,  from  whom  the  Populist  purchase 
his  vegetables  at  the  very  lowest  possible  price  fo 
which  he  can  get  them,  every  one  of  them  gets  th 
highest  market  price  for  his  wares,  when  he  car 
That  is  nothing  but  trade,  and  where  does  Shyloc! 
come  in? 


CHAPTER  III. 


LABOR  SECOND — THE  NATIONAL  BANKING  ACT. 

The  national  banking  act  is  wliat  they  call  “ con- 
spiracy number  ttvo,”  and  like  all  the  rest  of  the 
signs  and  v.-onders  of  the  Populist  Party,  it  is 
easily  disposed  of. 

A'ears  ago,  when  “ Shylock  ” was  a very  humble 
individual,  upon  whose  gabardjne  this  third  party 
could  expectorate  to  its  heart’s  content,  the  Ameri- 
can people  looked  to  the  State  bank  for  their  con- 
venience in  the  shape  of  paper  money.  These 
State  banks  were  founded  according-  to  the  varied 
ideas  of  the  individuals  concerned,  issuing  their 
“ promises  to  pay  ” with  only  one-third  ot  their 
circulation  secured  by  funds,  lands,  mortgages,  or 
property  of  any  kind.  This  was  the  Hyd  ra,  with 
more  than  a hundred  heads,  that  Hercules  slew. 

A man  could  start  a bank  on  the  buying  value  of 
land,  that  had  depreciated  on  his  hands  till  he 
could  not  sell  it  for  twenty  per  cent,  of  what  he 
paid  for  it.  Their  notes  were  payable  in  current 
funds,  and  often  limited  in  time,  two  very  cun- 
ning traps  for  the  unwary.  The  current  funds  were 
mostly  old  and  mutilated  bills,  fractional  currency, 
and  the  like,  with  nowand  then  a respectable  note. 
These  were  paid  out  after  the  manner  of  the  world 
at  large — where  the  “ kicker  ” generally  gets  it — 
the  old  worn  out  notes  to  the  poor  man,  who  was 
glad  to  get  anything  for  his  hard  day’s  work,  and 
the  new,  crisp  notes  to  the  “kicker”  aforesaid, 
who  was  generally  a rich  business  man  ; or  were 

21 


22 


personally  appropriated  as  long  as  possible.  When 
the  limit  of  time  ran  out,  woe  unto  liim  in  wliose 
pockets  these  notes  were  found  ; and  it  was  not  in 
the  rich  inan’s  pockets  usually,  for  it  is  only  the 
poor  who  make  a bank  of  their  pocket-boolcs,  and 
the  rich  man,  who  can  aggregate  his  money,  looks 
too  closely  after  it  to  let  it  die  on  his  liands.  A 
man  dare  not  sleep  over  night  with  any  considera- 
ble number  of  tliese  notes  in  his  pockets,  not  be- 
cause he  feared  thieces,  but  because  he  might  find 
them  so  depreciated  by  next  morning  that  much 
of  their  value  would  have  stolen  away. 

Then,  too,  tliis  money  was  very  little  of  it  at  par, 
and  the  discount  varied,  not  only  in  the  different 
■ States,  but  the  same  money  was  more  or  less  valu- 
able, according  to  the  distance  it  traveled  from 
home.  For  instance,  Indiana  notes,  that  were  tol- 
erably good  at  home,  were  so  clipped  by  the  time 
they  reached  New  A"ork  that  even  the  banker  him- 
self, if  he  were  a mereliant  also,  as  was  often  the 
case,  would  never  think  of  taking  his  own  notes 
East  when  he  went  to  buy  goods.  All  this  made 
the  banker’s  work  no  sinecure,  and  he,  like  every- 
body else  in  this  selfish  world,  must  be  pai<l  for  his 
labor,  besides  it  took  money  to  transport  tliese 
notes  from  one  point  to  another  wlien  they  had 
traveled  so  far  away  from  home  as  to  be  next  to 
Avorthless : and  the  money,  to  do  all  this,  was  se- 
cured in  the  shape  of  farther  discount,  which  came 
out  of  the  poor  man’s  pocket  every  time— the  man 
who  spent  the  money  for  bread. 

Something  must  be  done;  and  Congress  set  out 
to  do  it.  They  did  not  go  to  work  and  issue  un- 
limited fiat-money,  according  to  the  wild  theories 
of  visionaa'ies,  but  they  determined  to  devise  a 


23 


plan  that  would  forever  put  an  end  to  the  wild-cat 
hanking,  that  had  previously  been  stimulated  by 
such  unsecured  circulation.  Men  actually  issued 
their  private  “ promises  to  pay  ” on  their  farm 
stock,  and  the  cow,  horse,  or  hog,  whichever  it 
happened  to  be,  was  set  forth  V)y  a description  giv- 
ing all  its  best  points,  and  carefully  abstaining 
from  mentioning  defects.  This  plan,  by  the  way, 
is  of  the  same  kind  that  is  now  part  of  the  Populist 
idea,  I believe. 

On  FebruaiT  25, 1SG3,  the  Government  established 
by  Act  of  Congress  a uniform  National  bank  sys- 
tem, the  verj"  best  in  all  the  world,  amended  by  an 
xlct  of  June  3,  ly&i,  bj'  which  in  all  these  years,  119 
note  holder  has  lost  a dollar,  liecause  every  cent  in 
circulation,  and  11 1-9  per  cent,  over,  is  secured  by 
actual  deposit  of  bonds  so  that  it  not  only  has  the 
good  faith  of  our  Government  behind  it,  but  is  se- 
cured by  at  least  forty  per  cent,  more  than  its  actual 
6o«« /?rfc  circulation,  because  its  notes  are  never 
all  out  at  once.  No  robbery  in  that. 

Now  as  to  certain  wild  statements  about  the  bond- 
holding banker’s  double  interest,  let  us  see.  It  is 
true  that  he  receives  interest  on  his  bond,  and  that 
he  gets  interest  from  those  who  borro^v  the  bank- 
notes that  represent  nine-tenths  of  that  bond.  This 
looks  very  much  like  being  paid  twice,  if  you  look 
the  way  the  Greenbacker  points.  But  I warn  you 
that  you  will  acquire  obliquity  of  vision  if  you  take 
such  a one-sided  view  of  things,  and  I propose  to 
show  you  tlie  other  side. 

A man  always  has  a right  to  his  own,  and  the 
man  who  buys  bonds  with  his  money,  instead  of 
lending  it  in  some  other  way,  may  “pay  his  money 
and  take  his  choice.”  In  either  case  the  increase- 


24 


is  his  earnings.  If  he  wishes  to  go  into  banking, 
lie  nmst  associate  with  liimself  at  least  four  others, 
and  the  five  must  act  as  directors.  Tliey  must 
have  a capital  of  at  least  S100,000,  thoirgh  they  may 
liank  on  half  thatsum  in  towns  not  exceeding  six 
thousand  inhabitants,  by  the  approval  of  the  Sec- 
retary of  the  Treasury.  They  draw  this  sum  from 
former  investments,  thus  foregoing  the  legal  inter- 
est they  had  been  receiving  for  it,  which  in  many 
of  the  States  is  drawing  ten  per  cent.,  and  is  in 
only  one  State  less  tlian  six.  IVith  this  sum  they 
buy  their  bonds — we  will  take  the  iiighest  inexist- 
ence under  Repulilican  rule,  drawing  four  per 
cent. — receiving  upon  it  §4,000  interest,  which  can 
be  paid  in  advance,  of  not  more  than  one  year,  at 
the  discretion  of  the  Secretary,  but  seldom  is  so 
paid.  (The  authority  for  tliis  will  be  found  in  sec- 
tion 3099  of  tlie  Revised  Statutes  of  the  United 
States,  and  was  meant,  as  every  one  knows,  for  the 
convenience  of  the  jieople  during  the  movement  of 
the  crops,  etc.  The  Secretary  could  demand  a re- 
bate in  return  for  this  accommodation,  too,  if  he 
cliose.)  They  received,  also,  bank  notes  to  use 
in  circulation  for  nine-tenths  of  the  value  of  their 
liond.  This  gives  tliem  four  per  cent,  interest  an- 
nually, for  the  wliole  sum  of  §100,000,  and  the  op- 
portunity to  earn  .additional  interest  on  §90,000.  So 
far,  so  good  ; it  is  all  plain  sailing  witli  the  gentle- 
men bankers.  But — they  must  pay  on  the  spot  a 
premium  of  at  least  §10,000  ; I believe  it  is  higher 
now ; and  four  per  cent,  for  printing  their  bank 
note  paper,  §3,600  more;  they  must  deposit  §4,0.50, 
41  per  cent.,  as  a redemption  fund  to  be  employed 
in  restoring  the  notes  mutilated  by  use,  thus  to  se- 
cure the  user  from  loss.  These  sums  take  up  at 


25 


once  the  §4,000  interest  and  §19,650  besides,  that 
must  all  be  withdrawn  I'rom  their  former  opera- 
tions. Then  they  have  annual  expenses  to  pay. 
First  the  yearly  examination  into  the  condition  of 
their  bank,  made  by  the  Government,  costs  them 
§100,  and  publishing  their  quarterly  stateu-  ents  of 
said  cbndition  about  as  much  more  ; and  added  to 
all  this  they  must  pay  an  annual  tax  of  one  per 
cent,  on  their  circulation,  deposits,  etc. 

Thus  they  niust  pay  down  at  least  §123,650  in 
order  to  get  their  §90,000  in  bank  notes,  and  after 
that  their  one  per  cent,  interest,  and  the  other  ex- 
penses, which  are  about  a quarter  of  a cent  per  cent, 
more,  making  an  annual  outlay  of  §1,125  to  say 
nothing  of  rent,  heat,  clerk  hire,  mail  service, 
monthly  statement  printed  in  the  newspapers,  etc., 
which  will  consume  each  year  the  interest  as  fast 
as  it  comes  di^e.  And  after  all,  the  Government 
does  not  give  them  the  bank  notes,  for  even  after 
they  have  paid  for  printing  them,  out  of  their  own 
pockets,  they  are  nothing  but  blanks,  worth  no 
more  than  ordinary  blank  bank  checks,  tilt  is  added 
the  signature  of  president  and  cashier,  which  gives 
them  their  only  value,  which  is  much  or  little  as 
they — “ the  bloated  bondholders  ” — are  worth  much 
or  little.  The  Government  gives  no  value  what- 
j ever  to  these  notes  ; it  merely  secures  the  creditor 
! of  the  bank  against  loss  by  holding  the  bankers’ 
bond  to  be  used  in  making  good  every  note  issued 
I against  it. 

■ I knew  a case  where  a wealthy  man  wrote  his  air- 
, tograph  in  a woman’s  allium  in  the  shape  of  a 
j bank  check.  The  woman’s  son  collected  the  .sum 
i mentioned  in  the  improvised  check,  and  the  courts 
on  a trial  decided  in  favor  of  the  young  man.  It 


Was  tlie  money  represented  by  the  signature,  not 
the  paper  torn  from  the  album,  that  made  it  cur- 
rent at  the  bank. 

So  you  see  our  bankers  have  at  once  swallowed 
up  their  whole  interest  and  §16,500  more,  beside 
leaving  one-tenth  of  their  money  in  limbo,  draw- 
ing but  4 per  cent,  interest.  Xow  if  tliey  should 
lend  all  the  balance  at  the  i-ate  wiiich  is  fixed  by 
law  to  correspond  with  the  legal  interest  of  tlie 
State  wiiere  tlie  bank  is  situated,  they  woidd  be 
getting  no  more  than  their  former  interest.  But  a 
banker  never  depletes  Ins  bank  by  lending  out  all 
his  notes  at  once,  so  some  must  always  be  idle. 

Thus  jmu  see  this  “villainous  roliber  ” has  gained 
nothing  after  all ; in  fact  has  lost  l>y  his  change  of 
base  from  a simple  business  man  to  a “bloated 
bond-holder,  ” only  that  he  lias  a wider  field  in 
which  to  operate,  and  that  was  what  he  was  after 
in  the  first  place,  for  money,  dependent  on  outside 
investment,  is  often  unemployed.  The  law  fixes 
the  amount,  too.  The  act  of  June  3,  1S64,  reads : 

Every  association  hereinafter  named  shall,  at  Jill  times,  have 
on  hand,  in  latvful  money  of  the  United  States,  an  anionnt 
equal  to  at  least  25  per  centum  of  the  aggregate  amount  of  its 
notes  in  circulation,  and  of  its  deposits;  .and  every  other  asso- 
ciation shall  at  all  times  have  on  hand,  in  lawful  money  of  the 
United  States,  an  .amount  equal  to  at  least  15  per  centum  of  the 
aggregate  .amount  of  its  notes  in  circulation,  and  of  its  de- 
posits. 

This  w.us  changed  in  the  act  of  June  20,  h‘^74,  l>y 
the  repeal  of  tliat  jiart  whicii  applies  to  tlio  circu- 
lation, but  left  a reserve  on  the  deposits  still. 

He  has  no  monopoly  in  this  cilhor.  for  any!>ouy 
can  buy  a bond  on  precisely  the  same  t.  rms.  .n d 
any  set  of  jieoiile  can  join  their  bonds  togetherand 
start  a bank,  too,  even  the  servant  girls  in  your 


27 


kitchen.  Oh  ! ye  reformers  of  our  money  service, 
uniess  yon  pay  them  tiat  money  for  their  wages,  in 
wliicii  case  they  would  soon  have  to  interview  tlie 
paper-rag  man. 

That  men  take  advantage  of  our  banking  iaws  to 
rob  the  poor,  as  these  so-called  sympathizers  claim^ 
I positively  deny,  becau.se  I do  not  see  how  they 
can.  The  banker  is  not  allowed  to  loan  money  on 
mortgages  or  accept  security  on  real  estate,  save  to 
secure  a debt  previously  contracted  that  can  not 
otherwise  be  liquidated,  and  then,  as  is  the  cus- 
tom the  world  over,  the  man’s  property  becomes 
responsible  for  his  indebtedness.  The  law  fixes 
the  rate  of  interest  at  the  iawful  rate  of  the  State  or 
Territory  where  the  bank  is  located  ; and  when  no 
interest  is  fixed  by  the  laws  of  the  State,  they  can 
charge' but  seven  per  cent.,  the  penalty  for  disobey- 
ing this  is  to  lose  all  of  tlie  interest,  except  in  cases 
that  are  specified. 

It  is  true,  however,  that  human  wisdom  lias  not 
’ yet  found  a way  to  prevent  the  wicked  from  turn- 
I ing  good  into  evil,  because  there  has  been  discov- 
j ered  no  law  that  will  be  accommodating  enough 
1 to  work  both  ways  at  once.  But  even  divine  law 
has  the  same  result,  and  the  sun  still  sliines,  after 
I all  these  centuries,  on  the  unjust  along  with  the 
I just. 

And  with  all  their  faults  we  would  hardly  be  bet- 
tered by  the  change  to  Government  banking  that 
has  been  discussed  and  proven  inadequate,  peri- 
odically, ever  since  the  first  National  bank  was 
: Stalled,  and  as  the  mare’s  nest  hunters  are  again 
' agitating  the  subject,  it  would,  perhaps,  be  as  well 
to  quote  Secretary  McCulloch’s  disposition  of  the 
subject.  In  his  report  on  the  state  of  the  finances. 


dated  November  30,  1807,  the  currency  question  is 
settled  as  follows ; 

Tins  subject  is  before  the  public  upon  two  propositions : 1 
To  deprive  the  National  banks  of  the  right  to  issue  notes  foi 
circulation,  in  order  that  the  Government  may  issue  its  owr 
notes  in  their  place.  2,  To  issue  United  States  notes,  in  pay 
ment  of  compound  interest  notes,  seven-thirt}'  notes,  and  five 
twenty  bonds,  as  they  mature  and  become  paj'able.  To  state 
the  first  proposition  fairly,  it  proposes  to  withdraw  the  circu 
lation  of  National  banks  in  order  that  the  Government  maj 
occupy  the  whole  field.  The  §300,000,000  of  bank  notes  to  be 
replaced  by  §300,000,000  of  United  States  notes. 

The  §300,000,000  of  United  States  notes  are  to  be  used  for  the 
purchase  of  United  States  bonds,  which  are  to  be  canceled: 
and  thus  non-interest  bearing  notes  are  to  be  substituted  for 
interest  bearing  bonds,  whereby  a saving  is  to  be  effected  ot 
the  amount  of  interest  that  would  otherwise  be  paid  upon  the 
bonds  so  canceled. 

It  is  claimed  that  by  paymont  of  interest  on  the  bonds  de- 
posited by  the  National  banks  with  the  Treasurer  of  the  United 
States  as  security  for  their  circulating  notes,  the  Government 
pays  to  the  banks  a bonus  for  issuing  §300,000,000  of  currenej’ 
which  it  might  have  without  the  bonus  by  issuing  its  own 
notes. 

This  is  a plausible  proposition.  Many  of  its  advocates  arc 
honest  in  the  belief  that  by  acting  upon  this  theory  the  Gov- 
ernment would  actually  save  $18,000,000  per  annum,  and  they 
arc  entitled  to  a fair  hearing. 

The  National  banks  are  authorized  to  issue  $300,000,000  of 
currency.  The  same  amount  of  legal  tenders  substituted  for 
this  currency,  would  purchase  $277,800,000  United  States  bonds 
at  108,  which  is  less  than  the  present  market  price.  The  inter- 
est on  these  bonds  at  six  per  cent,  would  be  $16, 668,000 

If  the  bonds  could  be  purchased  at  105,  the  legal  tenders 
would  buy  $285,700,000,  the  interest  upon  which  would  be  $17,- 
1(2,000. 

If  the  bonds  could  be  bought  at  par,  there  would  be  $300,- 
000,000,  upon  which  the  interest  would  be  $18,000,000. 

The  National  banks,  however,  for  the  year  1866,  actually  paid 
over  §16,000,000  in  taxes,  as  follows  : 


To  the  Federal  Govcrnii:ent, 
To  the  States, 


29 


$8,069,938 

7,940,451 


Total,  ......  10,019,389 

(The  above  was  based  upon  the  reports  of  the  Commissioner 
;>f  Internal  Revenue  and  the  returns  of  the  bants  from  each 
State.) 

As  tlie  revenues  of  the  general  Government  are  derived  from 
.axation,  the  return  of  an3'  sum  by  the  banks  of  the  State  gov- 
jrninent,  in  the  w*ay  of  taxes,  is  substantially  a return  to  the 
people  who  pay  federal  taxes,  and  is  properly  credited  to  the 
Danks  in  any  statement  of  account  between  them  and  the  Gov- 
jrnment. 

If  the  bonds  purchased  by  this  new  issue  of  legal  tenders 
ost  ICS,  the  interest  on  such  bonds  would  be  $16,668,000;  de- 
luct  taxes  paid,  $i6.019,:iS0 ; amount  saved,  $648,611.  If  the 
)onds  cost  105  the  amount  saved  would  be  $1,12*2,611. 

If  the  bonds  could  be  bought  at  par  the  amount  saved  would 
ie  82,000,000. 

This  is  the  sura  total  to  be  saved  under'the  aspect  of  the  case 
nost  favorable  to  the  advocates  of  the  proposed  change. 

But  this  is  not  ail.  The  National  hanks  are  compelled  by 
aw  to  hold  constantly  in  reserve  a certain  percentage  of  their 
irculation  and  deposits  in  United  States  legal-tender  notes, 
rile  amount  thus  held  permanently  in  reserve  is  never  less  than 
1.50,000,000  (generally  about  8180,000,000),  and  is  a gratuitous 
loan  to  the  Government.  The  hanks  get  no  interest  on  it.  It 
s so  much  of  their  capital  unproductive,  invested  in  non- 
^terest-bearing  notes  of  the  Government. 

The  case  may  now  he  stated  thus.  The  hanks  have  loaned  to 
[he  Government  as  follows  : 

or  bonds  deposited  to  secure  their  circulation 
hearing  six  per  cent.  Interest  . . . $250,000,000 

Searing  five  per  cent.  .....  00,000,000 

'ermanent  reserve  of  legal  tenders  . . . 150,000,000 

Total  loan  to  the  United  States  . . $400,000,000 

or  which  they  receive  six  per  cent,  interest  on 
$250,000,000  ......  $15,000,000 

Ive  per  cent,  on  800,000,000  ....  4,500,000 

Total $19,500,000 

ut  they  refund  iu  taxes  .....  16,000,000 
[leaving  .......  3,500,000 


30 


Which  the  Government  pays  the  hanks  for  a loan  of  $190 
COO.OCO,  a little  less  than  three-fourths  of  one  per  cent. 

But  there  is  still  another  aspect  of  the  case  : 

The  hauks  are  held  riijidly  accountable  for  the  interest  the 
receive  on  money  honestly  loaned  to  the  Government  when  i 
needed  money,  aud  they  claim  credit  for  the  money  loaned  t 
the  Government  without  interest.  They  hold  these  $150,000 
000  in  obedience  to  the  mandates  of  the  law  wliile  money, 
worth  to  them  six  per  cent.  They,  therefore,  give  the  Go\ 
ernment  the  use  of  the  money— that  is  to  say,  six  per  cent,  o 
$150,000,000  non-interQst  bearing  notes,  held  permanently  in  n 
serve,  $9,000,000  ; they  repay  in  shape  of  taxes,  $16,OOO.OOC 
total,  $25^000,000;  they  receive  from  the  Government,  $10,500 
000,  leaving  §5,500,000  which  the  bank  actually  pays  to  the  Go\ 
ernment  as  a bonus  for  the  privilege  of  circulating  their  ow 
notes. 

The  fact  should  not  be  overlooked';in  this  connection  thai 
the  banks  have  deposited  $;)40,000,000  witli  the  Treasurer  e 
security  for  their  issues,  l^ow  the  TJnited  States  could  nc 
possibly  buy  over  $200,000,000  of  these  bonds  without  actui 
addition  of  $20,000,000  or  $40,000,000  of  greenbacks  to  the  amour 
it  is  proposed  to  issue  ia  lieu  of  $200,000,000  of  National  ban 
notes.  The  result  v’ould  be  cither  that  the  Government  woul 
fail  to  save  $2,400,000  interest  on  $4,000,000  of  its  bonds,  whic 
it  could  not  purchase,  or  it  would  have  to  try  the  dangcroc 
and  unnecessary  experiment  of  again  inflating  the  currency. 
Tlie  $00,000,000  of  5 per  cent,  bonds  might  be  bought 
at  par  .......  $90, 000, Of 

Suppose  the  G per  cent,  bonds  could  be  bought  at 
lOG  (though  they  are  uov/  selling  much  higher)— 

§250,000,000  at  lOG  . . . . . 265,000,01 


It  would  take  .....  $3.55, 000, GH 
to  buy  the  bonds  now  held  by  the  hanks.  Here  is  a direct  infl: 
tioii  of  $55,000,000,  which  is  the  excess  over  the  interest  r« 
ceived  by  the  banks,  paid  as  a bonus  for  their  circulation. 

Ill  fact  the  circulating  feature  of  the  IXationn 
banks  is  a source  of  expense  instead  of  an  incouK 
for  which  reason  no  ISTational  banks  have  for  year 
taken  out  over  1 he  niiniimmi  amount  otcirculatioi 
and  tlicy  would  aliolish  the  circidating  feature  t 


31 

he  law  entirely  if  they  could,  because  it  is  an  ex- 
tensive luxury. 

On  this  subject  Comptroller  Lacey  said  in  his  re- 
port for  1890,  after  calling  attention  to  the  fact  that 
he  issuing  of  circulating  notes  by  ISTational  Bank- 
ng  Associations  was  unprofitable,  and  in  a ma- 
arity  of  cases  a positive  loss,  resulting  from  the 
igh  rate  of  premium  established  in  the  market 
pon  the  bonds  of  the  United  States  available  for 
he  purpose  of  securing  note  issues; 

In  the  opinion  of  tlie  Comptroller  the  law  governing  Ka- 
lonal  banks  should  he  amended  so  as  to  produce  the  following 
lodifications  : 

1.  The  uiiaiiuum  deposit  of  bonds  to  secure  circnlation 
lould  be  llxed  at  ten  per  cent,  of  the  capital  stock  in  respect 
) all  associations  having  a capital  of  §300,000  or  less,  and  for 
p banks  having  a greater  capital,  a minimum  deposit  of  §30,- 
JO  in  bonds  should  be  required.  . . 

|2.  Circulation  should  be  issued  to  the  par  value  of  tligbonsls 
eposited.  'i..;  .' 

|3.  The  semi-annual  duty  on  circulation  should  be  so  f eS’ncetl 
p to  equal  one-fourth  of  one  per  cent,  per  annum.  ■ ,i.-  > 

These  recommendations  are  renewed  at  the  preseAftlme, 
rlthout  modification,  except  as  to  the  first  proposition,  which 
light  be  so  changed  as  to  fix  the  minimum  of  bond  deposit  at 
le  nominal  sum  of  §1,000  for  each  association  without  refer- 
hco  to  the  amount  of  capital  stock  paid  in. 

On  the  15th  of  .Inly,  second  year,  the  Hon.  .Itihn 
herinan,  recognizing  the  same  troulile,  introduced 
bill  to  meet  tlie  exigency,  referring  to  wliich 
(Omptroller  Lacey  says : 

It  will  be  observed  that  the  bill  provides: 

1.  That  no  association  shall  be  required  to  maintain  a bond 
eposit  of  more  than  §1,000  to  secure  circulation. 

2.  That  every  association  may  issue  circulation  equal  to  the 
or  value  of  its  bonds  so  deposited. 

:|3.  That  the  monthly  withdrawal  of  bonds  under  the  act  shall 
Ipt  exceed  $:3,000,000  in  the  aggregate. 

■ Fnder  all  the  circumstances  the  Comptroller  has  no  hesita- 
|on  in  earnestly  recommending  the  pass.agc  of  this  bill. 


c*o 

It  is  a well-known  fact  that  the  circulation  of  tlie  m 
tional  banks  is  in  process  of  retirement.  During:  the  I ^ 
years  ended  October  31, 1800,  the  aggregate  of  their  circulat  ^ . 
based  upon  deposit  of  United  States  bonds  has  been  redu« 
from  $276,304,180  to  $124,958,736,  showing  a net  decrease  dur 
the  five  years  of  $151,345,453.  The  net  average  decrease 
each  of  the  past  five  years'is'$30,2G9,090.  lE 

This  is  more  significant  when  we  take  into  account  1 y.- 
fact  that  during  this  period  there  has  been  an  average  yeai 
increase  of  1G8  in  the  number  of  National  banks  and  an 

Vi 

crease  of  839  in  the  aRgregate. 

It  is  evident,  therefore,  tliat  causes  are  in  operation  whit  ^ 
nnless  removed,  will  in  the  near  future  reduce  tiie  circulati  BO 
of  National  hanks  to  the  mlnimnm  retinirement  of  the  law.  ^ 

“ But,”  say.s  the  objector,  “ lianks  are  notobligt  p 
to  take  out  any  circulation,  and  if  it  is  a luxur.  ir 
Avliy  take  out  even  the  miniimiiii  amount?  ” t 

It  is  true  that  the  law  governing  the  estal  o 
lishment  of  a Xational  bank  does  not  comp  L 
the  taking  out  of  any  circulation,  and  tliere  ai 
many  hanks  that  do  not  take  it  out.  For  ii 
stance,  there  are  five  hTational  banks  in  Me’ 
York  City,  viz.:  Chemical  National,  iUeehanic! 
National,  Merchant  National,  National  City  Banl- 
National  Park  Bank,  witli  a combined  capital  f 
?>7,300,000,  that  lias  not  taken  out  a dollar  of  circu 
lation,  although  entitled  at  that  time  to  overS5,0(K), 
000.  And  in  Chicago  the  First  National,  tlie  Mer 
chants’  National,  and  the  Pi’airie  State  Nationa 
are  in  the  samecategorj' — they  have  no  circulation 
But,  wliile  not  compelled  to  take  out  circulation 
they  are  compelled  to  buy  bonds  and  deposit  witl 
the  Treasurer  as  a basis  for  a circulation,  whethe 
tliey  want  it  or  not,  and  also  to  deposit  an  amouu 
equal  to  5 per  cent,  of  their  bonds  as  a “ redciuptioi 
fund”  to  redeem  a circulation  whicli  in  the  cases 
referred  to  they  have  not  taken  out. 


3.3 


Ifter  going  to  the  expense  of  buying  bonds  at  a 
bnium  of  twenty  per  cent,  and  depositing  live 
^ cent,  of  their  value  with  the  Treasury  for  “ fe- 
nption  fund  ” it  depends  entirely  upon  the  value 
poney  in  that  particular  locality  whether  a'  bank 
1 care  to  go  ahead  and  pay  one  per  cent,  tax  and 
ozen  other  expenses  and  take  over  ninety  per 
t.  of  the  par  value  in  circulation.  Where  money 
worth  ten  and  ‘twelve  per  cent.,  as  in  tlie 
fstern  States,  it  will  pay  to  do  so,  but  where 
ney  is  cheap  it  does  not  pay,  even  after  they 
I'e  the  bonds  deposited  and  have  incurred  the 
fviest  expense — the  premium  on  same.  This  is 
,ctly  why  the  hanks  quoted  aijove  have  no  cir- 
ation. 

ind  Mr.  Lacey  says  farther,  in  explaining  a table 
iiis  report : 

foregoing  table  is  perpetuated  to  show  by  comparison 
falling  off  in  the  amount  of  bonds  deposited  in  excess  of 
peciuirement.  and  it  will  be  seen  that  the  percentage  of 
pss  has  fallen  from  2S  in  1SS2-3  to  IS  in  1SS9-1)0. 

! the  201  banks  organized  during  the  past  fiscal  year  16S 
'i  a capital  of  §50,000  each,  amounting  to  §8,JOO,OCO  ; 77  have 
pital  of  over  §50,000  and  not  exceeding  §150,000,  and  46  have 
»gregate  capital  of  §20,250,000.  The  46  largest  banks  do- 
ted the  exact  amount  of  bonds  required  hy  law,  and  of  the 
[lining  245  banks  only  7 deposited  bonds  in  excess  of  the 
irement. 

twithstanding  the  accession  of  new  banks  to  the  system 
[the  consequent  deposit  of  bonds  and  issue  of  notes  the 
'tanding  circulation  steadily  decreases  from  year  to  year. 

ow  let  us  see  just  what  a dollar  bill  does  cost 
hanker. 

Dunting  4 per  cent  bonds  at  Si. 20,  the  banker 
jet  that  “ one-dollar  bill  ” had  to  deposit  with 
; government  S1..33L  which,  counting  money 
rth  10  per  cent  for  convenience,  would  figure 
about  this  way : »(> 


.n-1 

Interest  on  Sl.33i,  at  10  per  cent 

Tax  on  eircnlation 

Interest  on  the  5 per  cent  redemption  Hind  de- 
posited   

All  other  expenses 

Total  cost  of  one  dollar 

Prom  which  shoidd  he  subtracted: 

Interest  on  bond  .• 

Interest  on  dollar  loaned  


Leaving  a net  loss  of  nearly  1 cent  on  every  i 
lar  issued  or  §900  iierannnm  by  a banli  witliSDC 
eircnlation. 

And  yet  these  Nineteenth  Century  wise-ai 
tell  ns  that  the  banker  is  making  700  per  cent 
his  investment.  And  this  is  a fair  .specimei 
“ reform  party  ” mathematics. 

But  if  their  literature  is  remarkable  in  no  ot 
particular,  it  is  remarkable  in  the  way  in  wl 
they  tling  wild  statements  around,  without  o 
taking  aim  at  tlie  trutli.  If  their  efforts  happe 
hit  it,  well  and  good:  if  not — well,  the  tiniest 
do  will  inspire  confidence,  and  the  people  i 
think  it  a fonl,  not  a bad  aim.  They  said  : “ We  It 
seen  that  the  banking  interest  had  at  one  time 
representatives  in  Congress.”  Now,  if  we  li 
seen  it,  they  did  not  sh.ow  it,  and  I have  been 
aide  to  find  out  when  that  time  was.  In  anot 
place,  they  declare  it  was  when  the  ‘'crt 
strengthening  act”  was  passed.  It  was  therel 
the  Forty-first  Congress.  Turning  to  the  reco 
we  find  that  there  were  ten  bankers  in  all  hold 
scats  in  that  ('ongress,  two  Senators  and  eight  R 
1* 


35 


iscntutives.  Of  tliese,  but  one  poor,  lone,  solitary 
jiiisereant  •’  was  appointed  on  either  of  the  great 
ia]icial  eoiuinittees  where  the  act  was  formulated  ; 
lexander  G.  Cattell,  a Senator  from  Xew  Jersey, 
ho  was  a merchant  and  banker  also,  was  on  the 
inance  Committee.  The  other  members  of  that 
■mmitteewere  all  lawyers,  but  one,  who  was  edu- 
tod  a soldier.  The  personnel  of  the  Ways  and 
eans  Committee  was  also  with  a leaning  to  the 
w,  all  belonging  to  that  profession  but  three,  two 
erchants  and  one  editor. 

If  there  were  189  bankers  in  that  Congress  the 
cords  do  not  show  it,  and  unless  this  Populist 
ediuni  had  a seance  with  some  s])irit  I do  not  see 
iw  they  discovered  the  secret,  and  of  one  thing  I 
a sure,  the  spirit  was  not  “ the  spirit  of  the  times.” 
mother  .spirit. 

I In  the  present  Congress  there  is  only  a poor  little 
o,  not  enough  to  do  much  harm,  let  irs  hope. 
i,it  if  there  ever  were,  as  they  represent,  so  great 
humberof  bankers,  why  then  I should  think  that, 
I)  ice  the  jieople  elect  those  who  best  represent  their 
?i:erests,  there  must  have  been  some  very  rich 
tlmmunities  somewhere  taking  an  interest  in  pel- 
ves at  that  time ; and  with  all  due  respect  to  the 
/ lird  Congress,  and  the  Father  of  Our  Country, 
r I,  I claim  that  all  classes  have  a right  to  be  rep- 
lii  lented.  If  the  people  elected  the  devil  in  sutBi- 
iint  numbers,  and  he  secured  legislation  to  ro- 
ilive  the  tax  from  the  sulphurous  regions  to  which 
K belongs  and  places  the  burden  on  the  Salvation 
rf  my,  whose  fault  would  it  be?  In  that  ease  I 
oDuldcry,  “So  mote  it  be!  E pluribus  Unum ! 
iii  pinch  the  eagle’s  tail  feathers  till  he  squealed 
Riaaen !’  ” 


CHAPTER  IV. 


EXPLOIT  THIRD. — CONTRACTIOX  THAT  DID  XOT  I 
TRACT. 

The  mistakes  of  this  modern  Moses,  the  Popi 
party,  which  thus  constitutes  itself  a Ruide  to  ] 
out  of  the  wilderness  of  their  muddled  lack  of 
der.standing  these  fiat  children — for  I think  the  I 
ulist  must  have  been  created  by  some  unusual 
cree,  and  not  by  the  regular  course  of  nature- 
mistakes,  alas ! do  not  end  here. 

The  second  fallacy  is  what  is  called  “contrac 
of  the  currency,”  and  they  specify  the  act  of  A 
12,  18G6,  as  the  mode  by  which  this  enormity  ' 
committed.  The  tliird  exi)loit  of  our  hero,  sip 
ing  the  eagle  which  devoured  tJie  liver  of  our  p 
lie  credit. 

Turning  to  Webster  I find  the  word  “ conti 
tion  ” defined  thus : “ The  act  of  contracting,  dr: 
ing  together  or  shrinking,”  and  I am  honestly  ; 
loss  to  know  what  has  been  sliruidien. 

Greenbackers  say  it  was  the  currency  of 
country,  and  for  once  give  facts,  so  called,  in  s 
stantiation  of  their  assertion,  along  with  the  us 
hyperbolical  illustratioti.  They  say  that  by  1 
act  it  was  provided  that  “ a regular  and  system 
cal  cremation  of  greenbacks”  should  take  pi; 
Now  we  have  heard  what  the  Greenbackers  s 
let  ;is  find  what  the  hrw  had  to  sa3’: 

To  authorize  the  Secretary  of  the  Treasury,  at  his  dis 
tion,  to  receive  any  treasury  notes  or  other  ohligations  isf 
under  any  act  of  Congress,  lehether  bearing  interest  or  no 
exchange  for  any  description  of  bonds  authorized  by  the 
to  ■which  this  is  an  amendment. 

36 


Tliere  it  is : plain  enough  it  seems.  iNIerely  an 
act  autliorizing  the  Ihlflllment  of  the  promises  of 
the  Government  to  redeem  these  Treasury  notes  on 
tlio  demand  of  their  holders.  If  they  are  worth  so 
much  more  than  the  bonds  offered  in  excliange,  it 
is  strange  that  they  were  yielded  up  for  cremation. 

The  non-interest  bearing  greenback  -was  not  the 
pnly  paper  called  in  by  tliis  act,  as  it  applied  not 
only  to  them,  but  other  obligations. 

As  to  the  greenbacks  themselves,  statistics  show 
that  the  highest  amount  ever  outstanding  was  in 
July  of  1S6I  when  there  were,  at  one  time  8-117,300,- 
203,  and  yet  according  to  the  Populist  arithmetic, 
t is  stated  tliat  in  the  year  1869  alone  §500,000,000 
vere  destroyed. 

' To  begin  with,  this  puts  more  than  twice  the  sum 
.nto  the  possession  of  the  country  in  1869,  than 
jeoms  to  materialize  on  the  Treasury  reports.  Ac- 
' jording  to  those  there  were  in  circulation  at  that 
“late  State  bank  notes,  fractional  currency.  United 
‘ States  notes.  National  Bank  notes,  and  specie  in 
■irculation  on  the  Pacific  coast,  all  iiicluded,  8673,- 
'U8,2-il ; in  the  Treasury  there  were  of  the  four 
■'rinds  of  circulating  paper  money  mentioned 
“Ibove,  880,839,010.  This  added  together — which  I 
ake  it  would  represent  about  all  tlie  circulating 
'^noney  in  the  United  States,  unless  there  was  some 
“invisible — would  be  a total  of  §754,.378,254 ; a long 
^iistance  between  that  and  almost  two  billions 
redited  to  us  by  these  veracious  reformers. 

^'!  Next,  it  is  stated  that  enormous  sums  were  de- 
“ troyed  each  year  from  1866  to  1877,  aggregating— 
,,f  ithoirt  counting  the  first  year,  for  which  they  do 
ot  condescend  to  furnish  us  the  figures — the  grand 
rtal  of  §1,433,253,463;  just  §681,877,207  more  money 
ran  the  circulating  money  in  existence.  ISlind  you 


38 


they  expressly  state  that  this  money  was  taken  froi 
circulation,  and  attribute  all  the  troubles  incidei 
to  our  business  transactions  at  that  time,  to  th< 
fact,  declaring  that  the  decrease  of  money  lowere 
tlie  price  of  other  property,  doubled  the  debts  < 
the  poor  man,  and  also  the  Government  debt.  , 
soul-harrowing  picture,  but  it  is  only  a picture,  an 
not  taken  from  life  either.  Now  for  the  truth. 

Reading  from  the  law  again : “ But  nothin 
herein  contained  sliall  be  consti'ued  to  authoriz 
any  increase  of  the  public  debt,”  with  tlie  furthe 
provision;  “ That  of  United  States  notes  not moi 
than  ?10,000,000  may  be  returned  and  cancele 
Muthin  six  months  from  the  passage  of  this  act,  an 
thereafter  not  more  than  84,000,000  in  any  on 
month.”  Now,  using  a little  arithmetic,  one  .sees  at 
glance  that  848,000,000  was  the  utmost  tuat  could  b 
retired  in  a whole  year,  and  the  first  half  year  onl 
810,000,000,  and  had  the  utmost  been  done  that  coul 
l>e  done  under  the  law,  the  reduction  would  onl 
have  reached,  in  the  time  specified,  a total  of  8442. 
000,000.  But,  on  the  4th  of  February,  1868,  fust  on 
year,  nine  months  and  twenty-three  days  after  th 
act,  part  of  wliich  is  quoted  above,  an  act  w.a 
passed  which  reads  as  follows  : 

That  from  and  after  the  passage  of  this  act  the  authority  c 
the  Secretary  of  tlie  Treasury  to  make  any  reduction  of  th 
currency  by  retiring  or  canceling  United  States  notes  shall  hi 
and  is  hereby  suspended,  but  nothing  herein  contained  sha. 
prevent  the  cancelation  and  destruction  of  mutilated  Un.te 
States  notes,  the  replacinrj  of  the  same  icitk  notes  of  ih 
same  character  anil  amount. 

Had  the  utmost  the  law  allowed  of  this  “dir 
destruction”  been  accomplished,  there  would  havi 
lieen  less  than  804,000,000  retired  ; but  the  outsid' 
limit  was  far  from  being  attained,  for  but  844,000, 


3fl 


DOO  liad  been  retired  and  canceled  when  the  sus- 
pending act  was  passed,  leaving  still  outstanding 
>35(5,000,000  of  them,  and  at  the  same  time  addi- 
tional National  bank-notes  were  issued  to  the 
imount  of  S135,342,048,  with  further  annual  issues, 
seeping  pace  with  reductions  elsewhere.  The  frac- 
donal  currency  was  increased  also,  in  that  year, 
oy  an  additional  issue  of  §2,0(55,048,  this  increasing 
ilso  year  by  year. 

‘ Thus,  in  the  years  between  the  years  1866  and 
L876,  at  which  time  subsidiary  silver  came  into  ex- 
istence and  the  vState  bank-notes  had  at  last  all 
been  replaced  by  better  money,  our  circulating 
nedium  was  increasing  with  almost  steady  uni-' 
brmity  from  §675,488,244  in  1866  to  §727,609,388  in  1876. 
This,  too,  through  all  the  business  troubleof  which 
hese  people  complain,  and  the  panic  of  1873.  And  yet 
■ nthe  face  of  this  increase,  as  shown  by  the  records, 

' hey  declare  that  a scarcity  of  money  (vas  the  cause 
'^f  it  all  and  ruined  the  value  of  other  property. 

''  We  sold  §95,500,000  worth  of  bonds  for  gold,  also, 

' k’hich  was  covered  into  the  Treasury,  thus  .secur- 
'^g  the  value  of  money  in  circidation  and  prevent- 
‘ n gloss  to  the  people. 

Besides  all  this,  a greenback  was  not  as  good  as 
Told  in  those  days.  Jt  is  wojc,  because  our  wise 
lepublican  government  made  it  so  by  the  very 
(Cts  that  the  Greenback  Party  is  now  decrying.  In 
I 866  a gold  dollar  was  worth  just  forty-one  cents 
i (lore  than  a greenback  dollar;  in  1867  it  decreased 
lireo  cents,  but  jumped  back  to  40  cents  in  1S6S. 

[ prom  that  time  tliere  was  a steady  but  gradual  de- 
llino  till  the  resumption  act  made  all  money — like 
I 111  men  in  this  country— equal  and  at  par  all  over 
|ie  world. 


40 


Of  the  bonds  issued  at  that  time  there  were  §840 
000,000  six  per  cents  issued  in  exchange  for  sever 
thirty  notes  ; and  nearly  §160,000,000  more  for  tb 
compound  interest  notes,  and  other  oligations  ma 
turing.  Counting  these,  the  figures  displayed  i 
the  records  will  approximate  to  those  of  my  dif 
tinguished  though  mistaken  countrymen ; and  a 
other  bonds,  bearing  a smaller  interest,  were  issue 
in  place  of  them,  for  nine-tenths  of  which  ban' 
notes  Avere  circulated,  thus  retiring  these  mature' 
interest-bearing  notes  as  they  came  due,  witlioii 
disturbing  the  circulation,  I do  not  see  how  the 
make  a case ; especially  as  these  interest  bearin 
securities  formed  no  part  of  the  permanent  circu 
lation. 

The  one  and  two-year  notes  of  1863  and  the  com 
pound  interest  notes  were  never  in  circulatioi 
more  than  a feAv  months,  just  after  they  were  issued 
for  they  were  soon  absorbed  as  investment  securi 
ties,  thus  withdraAviug  them  from  circulation.  Th 
seven-thirty  notes  Avere  not  used  as  money  no 
paid  out  as  such  by  the  Tieasury,  but  AA'ere  onl; 
negotiated  as  a loan  and  issued  by  the  GoA'ernmen 
to  investors  in  exchange  for  legal-tender  notes,  be 
ing  sold  at  par  and  accrued  interest  like  any  othe 
loan.  A soldier  AA  as  paid  noAv  and  then  with  on 
or  more  of  them,  less  than §10,000,000 in  all,  becaus' 
he  Avanted  to  keep  them  for  the  interest.  These 
Avere,  therefore,  neA’er  circulated. 

Another  reason  why  these  notes  could  not  hav- 
circulated  as  money  among  the  poor — who  were  s< 
greatly  distressed  on  account  of  their  AvithdraAval 
according  to  the  Greenbacker — Avas  their  size.  Xom 
of  them  were  of  a less  denomination  than  §.50,  o 
Avhich  there  Avere  §44,509,900 ; of  §100  there  Avon 


41 


olST^Col.GOO,  and  the  remaining  ^647,840,000  were  in 
denominations  of  ^00,  $1,000,  and  $5,000.  To  a poor 
ilium  one  of  the  smallest  of  these  bonds  would  have 
represented  his  savings,  to  be  hoarded  away. 

cVnd  j'et  another  reason  that  no  one,  either  poor 
in-  rich,  woidd  have  tried  to  use  these  notes  as  a 
circulating  medium,  was  their  constantly  changing 
ralue,  increasing  as  the  interest  accrued  up  to  the 
5emi-annual  payment  of  the  interest,  when  a cou- 
lon  was  cut  off,  and  the  liond  fell  back  at  its  face 
ralue  with  the  small  premium  at  which  they  sold 
n those  days,  added,  which  also  increased  and  de- 
jreased  according  to  the  fluctuations  of  the  market; 
ind  these  fluctuations  were  the  pulse  of  public  con- 
Idence  in  the  wisdom  of  our  Government,  too,  and 
he  fact  that  a Government  bond  is  worth  to-day  at 
least  sixteen  per  cent,  premium,  when  they  sold 
ihen  at  the  average  rate  of  38-1000  of  one  per  cent., 
;eems  to  me  a clean  bill  of  health  that  will  serve  as 
I,  vindication  of  those  acts  meant  for  the  general 
food,  sti  ong  enough  to  refute  the  calumnies  of  ev'en 
lie  most  chronic  croaker. 

Tlie  legal  tender  notes  received  by  the  depart- 
ment for  these  seven-thirty  notes  were  immedi- 
tely  paid  out  by  the  government,  in  settlement  of 
iemaud  liabilities  tlien  pressing,  .so  that  our  circu- 
Lition  was  increased,  instead  of  being  decreased 
}y  this  legislation,  in  two  ways:  First,  by  the  cir- 
lUlation  of  these  legal  tenders  ; and,  second,  by  the 
ncrease  of  the  National  bank  notes  provided  by 
lur  wise  legislators  exjjressly  to  prevent  contrac- 
ion  of  the  currency,  which  alone  was  twenty  per 
lent,  over  ; iii  proof  of  which  see  law  of  January 
4,  1865,  “the  resumption  act,”  which  saj's: 

It  shall  be  the  duty  of  the  Secretary  of  the  Treasury  to  redeem 


42 


the  legal  tender  United  States  notes,  in  excess  only  . 

000,000,  to  the  amount  of  eighty  per  centum  of  the  sum  of  ■ 
tional  bank  notes. 

b 

After  this  act  810,000,000  more  United  States  no  ^ 
were  retired,  and  then  on  May  31,  1.S78,  an  act  v ^ 
])asscd  forbidding  the  further  retireinentof  th<  (; 
notes,  and  leaving  8346,081,010  in  the  field,  wh:  ^ 
sum  you  will  see  carried  in  the  reports  of  1 ^ 
Treasury  up  to  the  present  time. 

And  this  sum  was  enough ; for  so  large  ! 
amount  of  United  States  notes  issued  as  a u 
measure,  were  still  outstanding  and  were  an  c , 
ject  of  suspicion  to  the  one,  and  were  the  basis  o , 
chimerical  hope  to  the  other.  Europe  did  not  ha 
an  overpowering  confidence  in  this  fiat  money,  ai 
the  other  class  began  to  talk  of  an  unlimited  su 
ply  without  the  trouble  of  earning  it. 

All  other  amounts  of  United  States  notes  th 
have  been  received  into  the  Treasury  from  ; 
sources,  such  as  internal  revenue,  customs,  et 
liave  been  paid  out  again  and  kept  in  circulatio 
What  has  been  said  about  the  hardship  to  tho 
who  had  money  to  be  redeemed  in  sums  less  th: 
§.50  is  worse  than  childish  nonsense  ; because  evei 
bank  from  Maine  to  California  did  that  for  them  : 
a mere  accommodation  without  discount  or  an; 
thing  else  in  the  shape  of  a hardship.  Col.  A: 
INIatthews,  First  Connitroller  of  the  Treasury  ui 
der  Harrison,  who  was  a banker  at  that  time,  saj 
he  has  done  it  Imndreds  of  times,  even  in  thesma 
town  where  he  lived.  And  it  is  equally  preposte; 
ous  that  the  poor  man  pays  the  rich  man’s  interes 
How,  in  the  name  of  common  sense,  does  he  do  i i 
He  has  no  property  to  tax  ; his  poll  tax  is  but 
annually  ; and  from  a number  of  interviews  wit 


jading  dealers  in  domestic  sitpplies,  I learn  that 
is  supplies,  far  from  being  increased  in  cost,  have 
een  growing  steadily  cheaper.  So  he  has  not  been 
'aying  a tax  on  his  living  either. 

Thus  you  see,  my  dear  long-sutfering  reader,  this 
ireenback.  Farmer’s- Alliance,  People’s,  Populist 
hibor  Party  cries  “rvolf!  wolf!”  when  there  isn’t 
^■en  a kitten  in  sight. 

But  while  they  have  among  them  such  champion 
ars  as  the  Georgia  editor  who  is  quoted,  it  is  no 
•onder  they  have  the  jim-jams,  and  see  wolves 
hd  things.  This  great  journalist  dealing  inhys- 
3ries  too,  draws  a picture  of  a poor  cotton  planter’s 
mes,  in  which  he  bases  them  all  in  the  decrease 
f money  per  capita  from  1868  to  1887.  In  the  first 
‘ lientioned  year  there  were  S40  per  cajuta  in  circu- 
ition,  according  to  the  above  mentioned  g.  j., 
hich  he  says  dwindled  down  to  §5  in  1887.  What 
retlie  facts? 

I am  rather  fond  of  facts.  In  1868  there  was  per 
]apita,  including  the  Pacific  coast  specie,  $18.39. 

^ n 1887  there  was  $22.45,  and  there  has  lieen  a steady 
icrease  ever  since.  There  has  also  been  a steady 
ecrease  of  the  public  debt,  which  at  tlie  end  of 
ebruary,  1892  was,  all  told,  $972,282,890.01.  Of  this 
um  $387,255,810.01  bears  no  interest,  and  the  4J  per 
ent.  bonds  have  been  converted  into  2 per  cent  re- 
eemable  at  the  option  of  the  government,  so  that 
le  highest  now  is  4 per  cent,  which  will  become 
lie  in  1907.  The  2 per  cent  bonds  are  the  lowest 
fat  have  been  floated  by  any  country  on  earth 
bowing  that  the  American  credit  is  the  best  in  the 
.rorld. 

If  these  facts  and  figures  that  I have  painfully 
Jaborated  directly  from  our  public  documents  did 


44 


not  prove  that  these  popuiistic  writers  must  ha' 
included  the  bonds  in  their  cremation  ,the  admissic 
of  the  great  greenback  apostle, General  J.B.Weav'e 
in  a conversation  with  Colonel  William  P.  Hej 
burn,  gives  tire  whole  matter  away.  Colonel  Hej 
burn  once  asked  him,  after  a speech  in  which  1 
made  pretty  much  the  same  statement,  what  1 
meant  to  include  in  this  large  sum,  and  if  1 
counted  the  bonds  also,  and  he  replied  that  he  dh 

Now,  if  some  people  are  so  very  obtuse  as  to  r< 
quire  an  object  lesson  to  convince  them,  I ha\ 
prepared  a kindergarden  illustration  for  then 
Inquiring  at  the  Treasury  what  had  become  of  a 
those  bonds,  an  officer  of  the  department  kindl 
offered  to  show  me. 

Down  in  the  basement  of  theTreasury,  in  a lonj 
narrow  room  without  opening  except  the  dor 
whicli  we  entered,  lighted  by  gas  and  furnishe 
with  shelves  from  floor  to  ceiling,  were  those  scl 
sameseven-fliirty  notes.  Done  up  in  bundles,  the 
filled  every  inch  of  space.  I was  permitted  to  bar 
die  some  of  tliem,  taking  my  choice  of  the  lot,  au' 
I found  tlie  most  of  them  as  clean,  except  froi 
dust,  that  had  accumulated  upon  the  outside,  a 
they  were  wlien  they  left  the  printing  press  On 
batch  of  flftys  had  been  out  about  two  years  and  . 
half,  and  in  that  time,  if  they  had  been  used  as  : 
circulating  medium,  some  signs  would  iiave  ap 
peared,  and  as  that  is  the  smallest  size,  they,  if  an; 
Avould  have  been  so  used. 

Sometimes  those  on  the  outside  would  look  a lit 
tie  sliabby  from  the  handling  in  the  office,  but  th< 
inside  notes  of  all  were  perfect,  except  a few  tha 
had  suffered  from  contact  with  damp  or  others  tha 
had  been  hidden  in  a stove,  perhaps,  wliere  thej 


45 


m cklentally  burned,  or  under  the  carpet, from  which 
ao  fe  deposit  they  suliered  contraction  from  the 
■eetli  of  mice.  But  as  to  any  of  the  signs  ot  busi- 
epss  circulation,  there  was  not  an  earthly  bit  of 
evidence,  such  as  one  very  readily  sees  in  the 
boms  where  greenbacks  and  bank  notes  are  sent 
1 r redemption  after  a few  years’  use. 
i]  When  cornered  by  this  statement  from  others, 
ii  ir  Third  party  friends  have  declared  that  these 
ronds  were  as  good  as  in  circulation  because  they 
v eremadeto  do  duty  as  the  required  reserve  on 
me  circulation,  thus  liberating  the  bank  iiotes. 
i!  ow,  in  the  first  place,  as  only  lawful  money  could 
lie  used  for  this  purpose  the  bonds  were  not  avail- 
pie  because  they  were  not  a legal  tender. 

; It  is  true  the  compound  interest  notes,  the  t'.iree 
I er cent,  coin  certificates,  and  the  “one  and  two- 
liear  notes  of  18G3”  were  a legal  tender,  and  might 
,'ave  been  used  that  way;  but  that  they  never  were 
3 used  the  records  of  the  Comptroller  of  the  Cur- 
ency  araijly  demonstrate,  and  as  an  example  of 
lis  I will  present  the  report  of  1868,  as  that  is  the 
irst  year  in  which  this  report  was  tabulated  in  a 
onvenieut  form. 

The  required  reserve  of  all  the  banks  in  exis- 
pnee  in  that  year  amounted  to  8186,421,682,  and  the 
awful  money.  United  States  notes  and  coin,  which 
liese  banks  had  in  reserve  at  that  time  was  8106,- 
idG,380,  a cool  810,3.34,698  more  than  was  required 
|Vithout  the  use  of  the  804,318,220,  compound  inter- 
ist  notes,  the  three  per  cent,  certificates,  etc.,  which 
vere  held  as  a simple  investment,  and  these  would 
i.ave  lacked  822,043,462  of  being  sufficient  had  they 
)een  the  only  dependence. 

The  compound  interest  notes  had  but  three  years 


4f) 

to  run,  too,  and  by  1870  were  all  rccleemed  boi  * 
little  over  §'2,000,000  that  were  for  various  reaso  • 
still  left  outstanding  though,  of  course,  liaving  n * 
tured  bearing  no  interest.  '• 

The  interest-bearing  notes  and  tlie  circulati 
notes  were  provided  for  in  the  very  same  act,  a' 
it  was  stated  in  the  debates  that  the  note  should 
used  as  an  investment  security,  while  the  oth 
would  add  ta  tlie  volume  of  money  in  circulatio 
And  this  was  literally  the  re.sult,  for  the  ca.s 
were  rare  indeed  where  the  com])ound  interc 
notes  changed  hands.  This  Iiappened  in  a few  i 
stances  where  tlie  original  recipients,  needing  tl 
money,  sold  them  to  tliose  who  wished  to  ho 
them  as  an  investment.  A chaplain  in  one  of  tl 
regiments,  as  an  instance,  regularly  bought  the: 
whenever  it  happened  that  “ the  boys  ” were  pai 
off  in- them  ; he  wislied  to  hold  them  for  the  inte 
est,  but  the  soldier  had  to  use  his  money  for  famil 
expenses. 

This  tliird  party  paints  a soul-harrowing  pictui 
of  the  struggles  of  a victim  of  this  “ contraction, 
and  to  make  matters  worse,  dumps  him  right  o 
to  the  Grand  Army  of  the  llepublic.  If  this  ])or 
man  had  such  a hard  time  I pity  him,  but  more  fc. 
want  of  sense  than  anything  else. 

Any  man  who  had  been  reared  on  a farm  tlia 
didn’t  know  better  than  to  bank  on  the  futur 
l)rice  of  wheat,  because  it  was  selling  at  the  tini 
for  ■?2  ]>er  bushel,  in  money  that  had  not  reached  i 
gold  standard,  was  a visionary  indeed ; even  th< 
little  boy  that  plays  marbles  in  the  street  know: 
better  than  that,  for  you  will  see  that  urchin  hgld 
ing  a reserve  for  emergencies  every  time. 

Business  failures,  like  everything  else  in  thi^ 


47 


>rld,  :u'o  tho  creations  of  such  a variety  of  cir- 
mstances  that  it  would  take  a hook  as  big'  as 
gin ebster’s  Dictionary  to  exhaust  the  subject.  As 
tliese  ])artieular  business  failures,  we  have  seen 
tiljlat  they  were  not  caused  by  the  lack  of  money  at 
:,aiL  events,  as  money  was  more  plentiful  than  ever, 
iH  id,  according  to  my  recollection,  they  did  not 
til  |,ppen  anyhow ; at  least  in  no  undue  proportion 
!in  the  new  business  ventures  at  that  tune.  The 
■as  ar  liaving  ended,  many  of  our  boys  in  blue  re- 
re  ^rned  to  business  avocations,  and  at  the  same 
iiine  immigration  took  on  a nev/  impetus,  almost 
fl  jubling  in  the  seven  years  after  186G  over  what  it 
;ol  as  in  the  seven  years  before.  All  these  must 
l[  ork  for  money  or  starve,  and  we  all  know  how  a 
lei  iroigner  can  work  when  he  gets  here,  where  the 
]j  lages,  as  compared  to  his  own  land,  seem  princely. 
ei  Added  to  this,  tiie  money  at  that  time  was  of  var- 
il  ibie  and  unsettled  value,  the  very  thing  Congress 
•as  trying  to  rectify.  As  during  the  rvar,  at  news 
[i^‘a  victory  for  Grant,  up  went  money  along  with 
he  hats  of  all  good  citizens  ; at  news  of  a Confed- 
)ii'ate  triumph  it  went  down,  because  the  one  in- 
, feasod  the  confidence  of  holders  and  the  other  de- 
ji'easod  it;  so  after  the  war  the  movements  of  our 
aw-makers  were  watched,  and  people  began  to 
peculate  as  to  when  we  would  resume  specie  pay- 
lients ; everybody  who  knew  anything  about 
poney  had  serious  doubts  about  a long  continu- 
mce  of  ii'redeemable  promises  to  pay  even  from 
he  greatest  Government  on  earth. 

England  with  a war  less  aggravated  than  oiu's 
br  many  reasons  took  twelve  years  to  accomplish 
esumption  ; this  seemed  a long  time  to  those  who 
Relieved  in  the  merry  jingle  of  metal  money — with 


48 


its  own  intrinsic  value  that  never  changes,  e>  U' 
with  the  destiny  of  nations,  except  by  the  imniu  sr- 
ble  law  of  supply  and  demand.  Then  came 
whisper,  a tiny  sibilant  sound  at  first,  but  at  1 t 
swelling  into  the  proportions  of  a new  party.  1 
Greenback  party  was  born,  which  declared  a pol.  g 
to  keep  right  on  printing  money  by  the  ljushel  » 
need  be,  regardless  of  the  fact  that  money  that  se  oi 
by  the  bushel  is  not  valuable.  The  people  did  j t 
want  to  run  the  risk  of  having  a greenback 
memoriam  like  that  dedicated  to  the  holders  of  1 j 
Confederate  Treasury  notes,  written  on  the  )jack 
one  of  tliem  by  Major  S.  A.  Jonas  of  the  Tex 
Brigade,  beginning  as  follows: 

iepresentlng  nothing  on  God’s  earth  now 

And  naught  in  the  waters  beiow  it. 

As  a pledge  of  the  nation  that’s  dead  and  gone. 

Keep  it,  dear  friend,  and  show  it. 

And  the  uneasiness  became  greater,  and  it  w: 
in  1877,  when  the  time  had  lengthened  out  till  oi 
money  was  at  a discount,  that  labor  was  chea] 
ened. 

As  to  the  panic  of  1.873,  that  was  in  no  sent 
brought  about  by  financial  legislation,  but  W£ 
caused,  in  the  first  place,  by  the  undue  expansio 
of  railroad  building  in  this  country. 

Jay  Cooke  <fc  Co.  were  the  first  to  fail,  and  the: 
failure  I’esulted  entirely  and  exclusively  from  the. 
intimate  relations  with  the  financiers  of  the  Xorther  ^ 
Pacific  Railroad,  whicli  was  then  in  process  of  cor 
struction,  and  of  which  they  were  tlie  fiscal  agent: 
The  whole  thing  began  in  New  York  City  in  Sep 
tember,  at  a time  when  money  is  always  compara 
tively  scarce  on  account  of  the  movement  of  crops 

Jay  Cooke  & Co.  had  loaned  nearly  all  of  thei 


“'Iioney  I'or  the  construction  of  the  railroad,  and 
Deere  unable  to  recover  it  in  season  to  meet  the 
'Hraughts  which  were  made  Upon  them  by  their 
1 lorrespondents,  and  were  obliged  to  suspend, 
i This  failure  of  a house  which  had  beenconsid- 
li ired  one  of  the  richest  and  most  powerful  in  the 

I ivorld  was  followed  almost  instantly  by  the  failure 
f»f  other  prominent  bankers  in  Ifew  York  City,  and 

I I panic  was  in  full  force  within  seventy-two  hours. 
It  was  at  that  very  time  that  we  had  our  irre- 

I leemable  currency  too,  a state  of  affairs  that  Con- 
gress was  laboring  to  change.  That  they  did 
ddiange  it  is  proven  by  the  fact  that  our  greatest 
prosperity  began  in  ’SO  and  ’81,  and  has  continued 
3ver  since. 

So  that  this  act,  which  they  call  “ contraction,” 
proves  to  have  been  expansion,  not  abnormal,  such 
as  the  Greenbackers  are  clamoring  for,  but  a 
healthy  expansion,  and  has  proven  its  right  to  be 
called  what  its  formula  tors  intended,  the  continua- 
tion of  “an act  to  provide  ways  and  means  for  the 
support  of  the  Government.” 


CIIAPTI^R  V. 


rODKTH  ACHIEVEMJ2NT — AN  ACT  TO  tSTHENGTIIP 
THE  PUBEIC  CREEIT. 

One  of  the  noblest  legislative  acts  ever  passed  I 
the  American  Congress  was  the  act  of  ISIarch  1 
1869,  entitled,  “An  act  to  strengthen  the  publ 
credit.”  For  it  was  thus  our  Hercules  eased  Ath 
by  taking  the  world  on  his  own  shoulders. 

This  act  was  made  necessary  by  the  fact  that 
class  of  malcontents  had  sprung  up  in  this  countr 
openly  proposing  that  our  Government  should  si 
the  example,  for  the  first  time  in  the  history  of  ni 
tions,  of  a semi-repudiation,  in  a time  of  prosperiO 
too,  of  the  most  .solemn  obligations  to  those  who  i 
the  hour  of  need,  aided  us  to  save  the  country  froi 
disintegration.  The  faith  of  the  Government  to  1 
disregarded,  the  great  seal  of  the  United  States  bt 
smirched,  and  oirr  flag  dishonored,  to  save  (c 
rather  steal)  out  of  the  borrowed  money  due  froi 
us  a few  jjaltry  dollars.  And  the  worst  of  it  is  tha 
we  would  not  have  saved  the  money  either,  for  th 
act  of  dishonor  in  itself  would  have  brought  its  ow 
punishment,  and  the  very  first  payment  of  on 
bonds  in  paper  currency  would  have  so  impairei 
our  credit  that  a United  States  note  would  not  hav 
been  worth  40  cents  on  the  dollar  in  our  own  mar 
kets  nor  the  paper  it  was  printed  on  in  Europe. 

True  in  the  one  clause  of  the  act  of  Feb.  2c 
1862,  by  which  the  first  batch  of  5-20  bonds  wer 
authorized,  it  was  not  expressly  stipulated  tha 
these  bonds  should  be  paid  in  gold,  because  the; 
had  alwaj^s  paid  them  thus,  and  it  had  never  beer 
50 


51 


c cnstoin  to  mention  the  fact.  In  all  the  loan 
\vs  I'roni  Aug.  4,  1790,  np  to  the  war,  no  mention 
made  of  the  particular  kind  of  money  in  which 
ese  obligations  were  to  be  redeemed.  There  was 
)t  even  a mention  of  coin  till  the  act  of  INIarch  2, 
61,  when  $35,364,450  of  Treasury  notes  were  issued, 
id  the  law  says: 

^nd  the  Treasury  notes  so  issued  under  the  authority  herein 
yen  shall  he  received  in  payment  for  ali  debts  to  the  TTnited 
ates  when  offered,  and  in  like  manner  shall  he  given  in  pay-" 
snt  for  any  sum  due  from  the  United  States,  when  payment 
that  mode  is  requested  by  the  person  to  whom  payment  is 
be  made,  or  for  their  par  value  in  coin. 

In  an  act  approved  July  17,  1861,  a further  issue 
■ Treasui-y  notes  was  made  in  exchange  for  coin, 
gain  in  the  same  act  the  Secretary  of  tlio  Treasury 
as  authorized  to  exchange  these  Treasury  notes 
ir  coin  or  for  other  Treasury  notes,  falling  due, 
lacing  the  two  on  the  same  basis. 

These  two  were  t!ie  only  times  that  the  word  coin 
as  mentioned  in  any  of  the  negotiations  prior  to 
le  act  of  February  25,  1862,  and  the  next  mention 
f coin  is  made  in  this  act,  itself.  In  this  act  sev- 
•al  important  measures  became  law.  First  the 
gal-tendor  notes  were  authorized  (and  by  the 
^ay  upon  the  vote  for  the  legal-tender  quality  of 
lose  notes,  the  j'eas  were  93  and  the  nays  59,  al- 
lost  a strictly  party  vote,  the  Republicans  for,  and 
*ie  Democrats  against),  an  issue  of  $200,000,000, 
•hieh  by  subsequent  acts  was  increased  to  $450,- 
1)0,000  was  authorized.  A pretty  good  load  for  any 
buntry  to  carry  on  its  simple  credit.  It  was  in 
Ids  act  that  the  famous  exception  was  made,  lor 
liese  notes  were  not  receivable  for  duties,  or  inter- 
bt  on  bonds. 

1 Second  the  five-twenty  bonds  were  issued  $515,- 


52 


000,000  wliich  was  increased  by  other  issues.  X<  s. 
as  to  there  being  no  isrovision  in  the  law  inaki  tc 
these  bonds  payable  in  gold,  an  intelligent  inU  jj 
pretation  is  altogether  in  favor  of  it.  ij., 

First,  it  had  been  the  habit  of  the  country  to  p; 
in  gold  and  silver  when  demanded,  although  i 1. 
act  had  ever  expressly  stipulated  this  ; second,  t T 
value  of  gold  at  that  time  was  but  two  per  cent,  mo  i 
than  par,  and  the  chances  seemed  at  that  time  that  jn 
would  be  back  to  its  normal  standard  long  befo  t 
any  of  these  bonds  matured;  third,  it  wasexpres  g 
ly  stipidated  that  the  Secretary  of  the  Treasui  g 
could  sell  them  for  coin,  which  presupposed  th  i 
those  buying  them  would  receive  like  money  . ■ 
return  for  them  if  so  desired;  fourth.  Section  5 
the  same  act  provides  that  all  import  duties  sha 
be  paid  in  coin,  etc.,  and  the  coin  so  paid  shall  1 
set  apart  as  a special  fund,  to  be  applied,  amor 
other  things,  to  the  purchase  or  payment  of  one  pc 
centum  of  the  entire  debt  of  the  United  States,  to  I 
made  within  each  fiscal  year,the  interest  of  this  als< 
to  be  applied  the  same  way;  and,  fifth,  as  the  sam 
act  that  authorized  this  loan  had  made  the  fir.' 
legal-tender,  of  which  there  were  ^31.5,000,000,  les 
than  the  amount  of  the  five-twenties,  the  old  de 
mand  notes  not  being  legal-tender,  our  law-maker 
had  no  legal-tender  notes  to  offer  either  for  this  o 
other  obligations  due  and  coming  due. 

Now,  as  these  bonds  were  issued  in  1SG2,  redeem 
able  at  the  pleasure  of  the  United  States  after  five 
years,  they  could  have  been  taken  up,  at  least  i 
part  of  them,  one  would  suppose,  before  1S71,  whei 
the  first  of  them  w'ere  redeemed,  and  I submit  the 
question  to  the  Populist  Party,  why  didn’t  they  dc 
it  if  they  were  so  anxious  to  enrich  the  bontlhold- 


■'''  s,  as  ill  the  interim  between  18G7  and  1871  gold 
'i  Ld  been  up  to  40  cents  premium,  and  at  the  time 

* ie  first  of  these  bonds  were  paid  was  again  on  a 
pid  descent,  and  the  last  were  not  paid  till  long 

P fter  the  resumption  act  had  made  all  our  moneys 
f like  value. 

^ The  act  making  anj’thing  else  but  gold  or  silver 
degal  tender  was  strictly  a war  measure,  sanc- 
II  ined  by  the  dire  emergency  that  made  it  neces- 
« h-y.  When  the  war  was  over  and  the  country  at 
' )ace  no  such  necessity  existed  ; and,  but  for  the 
iboakers  who  raised  the  question  on  a mere  techni- 
^lity  of  the  law,  and  a usual  one  at  that,  nobody 
iiould  ever  have  thought  anything  of  returning  to 
I le  old  ways  as  speedily  as  possible  after  the  war 

* as  over. 

'"But  the  croakers  croaked,  and  men  learned  in 
I hanciering  became  uneasy,  lest  even  the  law  of 
*l-ecodent  be  disregarded.  The  holders  of  tliese 
'ends  who  had  paid  good  money  for  them  became 
dieasy  also;  and,  mark  you,  those  bondholders 
'^presented  all  classes,  from  the  great  bankers 
own  to  the  frugal  farmer,  inechajiic,  or  crippled 
eldier,  who  had  laid  a trille  by  for  tlie  rainy  daj', 
^d  on  the  “ faith  of  the  United  States,  ” sealed  by 
Is  great  seal,  thought  the  Government  bonds  the 
ifest  investment  of  all.  What  a shame  to  cheat 
lese  confiding  people  with  a bitof  paper  of  depre- 
cated value!  Would  any  People’s  Party  house- 
|eeper  like  it,  when  she  lends  her  neighbor  a draw- 
hg  of  eolfee  fresh  browned  and  aromatic,  to  have 
hat  noiglibor  return  to  her,  the  full  amount  it  is 
fue,  but  of  a quality  from  which  the  strength  and 
iavor  have  vanished? 

Well,  that  is  just  what  these  children  of  discontent 


54 


want  our  Government  to  do  witli  the  holders  * 
tliese  bonds;  and  the  yelping  of  the  pack  of  huir. 
wolves  compelled  Congress  to  define  its  positi  f 
in  a sort  of  declaration  of  honesty,  as  it  were, 
this  “climax  of  audacity.” 

That  In  order  to  remove  any  donbt  as  to  the  purpose  of 
Government  to  discharge  all  just  obligations  to  the  pul  it 
creditors,  and  to  settle  conflicting  questions  and  interpn  ^ 
tions  of  the  laws  hy  virtue  of  v.-hich  such  oliligations  h:  j- 
been  contracted,  it  is  hereby  provided'aud  declared  that 
faitli  of  the  United  States  is  solemnly  pledged  to  the  payim  ^ 
in  coin,  or  its  equivalent,  of  all  the  obligations  of  the  Uni  ^ 
States  not  bearing  interest,  known  as  United  States  notes,  t t> 
of  all  the  interest-bearing  obligations  of  the  United  Stat  p 
except  in  cases  when  the  law  authorizing  the  issue  of  a ^ 
such  obligation  has  expressly  provided  that  the  same  may  , 
paid  in  lawful  money  or  other  currency  than  gold  or  silv 
Hut  none  of  said  interest-bearing  obligations  not  already  d 
shall  be  redeemed  or  paid  before  maturity,  unless  at  such  ti 
United  States  notes  shall  be  convertible  into  coin  at  the  < 
tion  of  the  holder,  or  unless  at  sue.h  time  bonds  of  the  Unit 
States  bearing  a lower  rate  of  interest  than  the  bonds  to  be 
deemed  can  be  sold  at  par  in  coin.  And  the  United  States  al 
solemnly  pledges  its  faith  to  make  provision  at  the  earlii 
practicable  period  for  the  redemption  of  the  United  Stal 
notes  in  coin. 

T)iis  is  the  first  act  of  General  Grant’s  admini 
tration. 

“ Immediately  upon  his  inauguration  anext> 
session  of  Congress  was  called”  by  the  old  w; 
hero.  “The  first  bill  presented,  the  first  bill  jias- 
ed,  the  first  act  approved  by  President  Grant,”  w: 
an  act  to  strengthen  the  public  credit.  (The  quoti 
tions  above  are  from  the  Populists,  the  rest  froi 
justice.)  And  it  is  for  this  act,  made  necessary  hi 
cause  of  the  Muncliarrsen  theories  of  grecnbac 
dreamers,  that  they  dare,  with  an  impious  iien,  t 
desecrate  the  tomb  of  the  man  who  protected  on 


55 


untry  from  its  enemies,  and  won  for  it  the  admi- 
tion  of  the  whole  world,  General  Grant,  honored 
V all  Europe. 

It  is  for  this  act  that  they  would  sully  the  fair 
me  of  Morton,  “ the  soldier’s  friend.”  He  who 
fVed  his  State  from  dishonor  when  its  Democratic 
egislature  refused  the  appropriations,  because 
ey  “ would  not  vote  money  to  war  on  the  South.” 
’'hen  the  Legislature  adjourned,  leaving  the  Gov- 
nnient  coifers  empty,  Oliver  P.  Morton  obtained 
le  necessary  funds  from  Winslow,  Lanier  & Co., 
inkers,  of  New  York,  (who  were  agents  of  the 
tate  in  managing  the  State  debt)  on  his  own  per- 
hial  responsibility,  giving  his  note,  as  did  some 
' his  friends  at  his  suggestion.  Afterward  the 
pneral  Government  authorized  him  to  establish  a 
irtridge  factory  at  Indianapolis,  advancing  him 
loney  on  his  personal  credit  to  do  so,  that  he 
light  by  the  sale  of  the  cartridges  meet  the  war  ex- 
enses  of  Uie  State.  And  after  every  battle  in  which 
(idiana  troops  were  engaged  the  great  war  Govern- 
r of  that  State  sent  aid  immediately — phy.sicians, 
urses,  and  supplies — all  on  his  own  promise  to  pay. 
[nd  every  dollar  of  it  was  paid.  Paid  in  money  at 
ar,  too.  No  repudiation  there.  That  Morton  lived 
ad  died  a poor  man,  after  handling  millions,  out 
f which  he  could  have  grown  rich,  but  of  which 
i^ery  dollar  is  accounted  for,  is  his  best  defense, 
jit  is  for  this  act  to  strengthen  the  public  credit, 
|iat  they  would  besmirch  the  living  monument, 
sared  even  before  death,  by  a life  of  unimpeacha- 
le  integrity,  to  John  Sherman. 

I The  circumstantial  evidence  proves  nothing  in 
ae  face  of  such  evidence  to  the  contrary,  and  al- 
lough  circumstantial  evidence  has  hung  many  an 


innocent  person,  it  is,  in  this  case,  hut  a figmei  r 
the  populist  brain,  which  they  do  not  offer  to  f i' 
stantiate  by  a single  fact,  merely  adding  a few  : > 
inises  and  probabilities  to  their  old  scarecrow  to- 
189  Congressional  bankers,  which  I have  alre 
disproved  by  facts  against  mere  assertion.  it 

Another  ghost  which  disturbs  the  Greenb 
haziness,  is  the  spirit  of  injustice  that  they 
shimmering  in  the  uncertain  gloaming  of  a 1 k 
ited  legal  understanding,  in  the  fact  that  th  i- 
bonds  are  not  taxed.  t 

Now,  it  is  not  strange  that  they  should  b:  K 
thought  that  at  last  sometliing  new  had  been  for 
under  the  sun,  for  in  discussing  the  act  of  Feb  f 
ary  25,  1862,  not  one  of  all  the  wise  Solons,  thouj  s 
by  some  people  to  know  everything,  referred  to  i s 
fact  that  the  question  had  been  settled  for  them  1 s 
fore  many  of  them  were  born. 

In  the  case  of  Weston  et  al.  vs.  Tlie  City  Coun 
of  Charleston,  the  Supreme  Court  of  tlie  Unit 
States,  the  highest  tribunal  in  the  land,  decid 
that  the  States  had  no  right  to  tax  such  a contra' 
In  delivering  the  opinion  of  the  court.  Chief  Ji: 
tice  .lohn  Marshall  said  : 

If  the  right  to  impose  the  tax  exists,  it  is  a right  whicli  in 
nature  acknowledges  no  limits.  It  may  be  carried  to  any  c 
tent  within  the  jurisdiction  of  the  State  or  corporation  whi 
imposes  it,  which  the  will  of  each  State  and  corporation  m; 
prescribe.  A power  w*hich  is  given  by  the  whole  Americs 
people  for  their  common  good,  which  is  to  be  exercised  at  tl 
most  critical  periods  for  the  most  important  purposes,  on  tl 
free  exercise  of  which  the  interests  certainly,  perhaps  the  li 
erty,  of  the  whole  may  depend,  may  be  burdened,  impede* 
if  not  arrested  by  any  of  the  organized  parts  of  the  Confc 
cracy. 

The  tax  on  Government  stock  is  thought  by  this  court  to  t 
a tax  on  the  contract,  a tax  on  the  power  to  borrow  money  o 


57 


ft  'I’edit  of  the  United  States,  and  consccinentlv  to  be  repug- 
)S;  to  the  Constitution.  (Peters’ Reports,  1839,  voi.  2,  page 

'1  .nd  of  course  it  would  be  a farce  for  the  General 
1!  i^ernment  to  tax  its  own  bonds,  for  in  that  case 
interest  would  have  to  be  increased  in  order  to 
li;  uce  anybody  to  take  them  at  all,  and  so  the 
• ^eminent  would  be  merely  taking  money  out 
li  me  pocket  and  putting  it  into  the  other,  paying 
li  the  transfer  in  the  bargain, 
hould  the  day  ever  come  that  the  hair-brained 
IS  itingent  of  our  National  family,  the  Greenback 
nl’ty,  gained  its  point,  drawing  the  Government 
IIP  a wild-cat  fiaaneial  system — or  rather  ivant  of 
i tem — that  day  our  Republic  would  become 
l ikiTipt,  and  its  creditors,  the  moneyed  power, 
(uld  go  down  into  the  maelstrom  of  ruin,  and 
a natural  sequence  every  wage  earner  in  the 
(iintry  would  keep  them  company;  for  capital  is 
I sliip  upon  which  labor  sails,  and  when  the  ves- 
goes  down  the  passengers  go  also, 
lliey  make  a great  show  of  quoting  from  tlio 
iding  Republicans  in  1867,  but  fail  to  tell  wiiat 
} same  men  said  under  the  conditions  of  1S69.  It 
wily  a fool  who  never  changes  his  mind  ; bufcif 
f)rton  and  Sherman, whom  they  abuse  in  the  very 

tne  chapter  as  “fratricidal  conspirators”  are 
rthy  of  being  quoted  at  all,  let  her  give  their 
'er  utterances  wlien  the  basis  of  our  currcTicy  had 
tirelj"  changed. 


CHAPTER  VI 


S'- 

FEAT  FIFTH — REFUNDING  THE  DECT.  ju 

Hercules  went  on  with  his  work,  although 
Populist  Juno  would  tain  have  turned  Galantl 
his  mother,  into  a weasel,  or,  in  plain  English,  h: 
subjected  the  constitutional  majority  to  the  wil 
a handful  of  Greonbackers.  And  his  fifth  feat  v 
the  refunding  of  the  public  debt,  the  fifth  falh 
of  the  greenback  chronology.  And  through  th 
mouth-piece  tliey  roared:  “ Why  in  the  dicke 
didn’t  they  pay  it?” 

Well,  my  friends,  1 presume  the  chief  reasons 
one  cousin  german  to  that  which  prevented  t ^ 
Boston  spinster  from  getting  married,  “ It  was  r ° 
because  she  disapproved  of  marrying  per  sc,  b ' 
on  account  of  tlie  scarcity  of  mediums.”  She  didi 
moan  spiritual  mediums,  l>y  the  way,  far  Irom 
But  women  are  a majority  in  Massachusetts. 

In  the  year  of  1870,  when  the  refunding  act  w 
passed,  the  principal  of  the  debt,  bearing  coin  i 
terest,  was  in  all  82,107,9.50,700,  to  be  paid  in  gold  ■ 
its  equivalent.  There  was  at  that  time  in  oi 
Treasury,  gold  coin  and  bullion  to  tlie  amount  ■ 
8108,310,040.  From  tliis  we  must  deduct  tlie  gol 
certificates  for  which  the  Government  was  liabl 
amounting  to  .832,084,800;  the  accrued  interest  to  I 
deducted  also  was  849,(547, 0.32  more,  leaving  bi 
820,594,814,  whicli  was  all  tlie  gold  owned  by  th 
Government  with  wliieh  to  ]iay  the  82,0(Xi,000,0( 
and  over  wiiich  wo  owed.  Will  some  prestidigita 
tor  jilease  step  forward  and  perform  the  feat  re 
quired  by  these  wonderful  peo]ile? 

58 


s s g!  j 


59 


lorcules  being  ordered  to  destroy  the  lion  that 
t fallen  from  the  moon,  and  finding  him  invul- 
ij  Table  to  any  weapon,  strangled  him  with  his 
j(j  ids,  and  afterward  wore  his  skin.  And  that  is 
ju  letly  what  the  American  hero  did. 
ijj  n the  very  year  that  the  most  labored  effort  of 
Populists  to  prove  that  we,  as  a nation,  were 
iij  t attempting  to  pay  our  debts,  was  in  its  latest 
jIj  .tion,  the  year  1891,  the  interest-bearing  debt, 
'ough  these  very  funding  operations,  had  dwin- 
id  down  from  the  two  billions  and  upward, 
mtioned  above,  to  the  sum  of  §585,028,080,  the 
. jhest  interest  rate  of  which  was  but  four  per 
i,it.,  instead  of  six,  and  of  which  §25,364,500  re- 
Ij  imable  at  the  pleasure  of  the  Government,  bears 
]|,t  two  per  cent,  interest;  and  under  this  act  the 
I nual  interest,  which  was  in  1870  §124,261,149,  had 
Lowise  dwindled  to  §28,893,034.  And  the  average 
, to  at  which  the  public  debt  has  annually  de- 
jj  based  since  1870  up  to  1893,  is  §51,621,268.  We  sold 
i4i,  and  4 per  cent,  bonds  at  par,  for  coin,  and 
ed  the  money  so  obtained  to  redeem  the  six  per 
ht.  bonds,  thus  saving  in  interest  §19,900,883.50 
I nually,  of  which  amount  §14,290,455.50  arises 
I |)m  transactions  since  ISlarch  1,  1877. 

[n  these  refunding  operations  the  same  wise  fore- 
ought  was  maintained  by  those  executing  the 
ws,  as  by  those  who  framed  them  that  every  dol- 
[r  might  be  used  to  the  best  advantage. 

The  Secretary  of  the  Treasury  was  required  by 
w to  give  three  month’s  notice  when  bonds  were 
.lied  to  allow  time  for  their  holders  to  adjust  their 
isiness,  which  was  according  to  agreement,  and 
sthing  but  fair  all  around.  In  the  most  ordinary 
isiness  transactions  such  an  arrangement  is  con- 


eo 


sidered  an  acquired  riglit.  And  noljody  lost  £ ^ 
tiling  by  it  either,  for  the  Secretary  generally  n ifr 
aged  to  call  the  bonds  at  a time  when  ho  ki 
there  would  be  collections  from  revenue  and  oi  ® 
moneys  coming  in,  so  that  in  all  the  ten  years  i IK 
it  took  to  complete  these  operations,  his  exiiei  I’t 
rail  over  to  the  wrong  side  of  the  account  but  oi  fc 
and  then  the  loss  was  compensated  twice  over  w 
the  saving  for  that  one  year  of  the  annual  inter  c 

And  yet  the  enemies  of  the  Government  1;. 
been  harping  on  this  ever  since,  talking  ab  •- 
doulile  interest,  etc.,  and  resolutely  closing  th  i 
eyes  to  the  immense  decrease.  “ There  ai'e  nom  c 
blind  as  those  who  wt/l  not  see.  ” '' 

They  will  not  see  that  the  interest  which  v 
^124,261,149  annuallyin  1870  had  been  reduced,  w! 
the  Republicans  retired  from  the  control  of  the  G< 
eminent,  in  189-3,  to  §22,.386,.543,  a saving  annua 
of  $101,874,606,  a result  of  the  refunding  operatic: 
coupled  with  purchases  and  redemptions  of  bon 
with  the  surplus  revenues,  a part  of  the  prese 
debt  bearing  but  two  per  cent,  interest,  and  ; 
deemable  at  the  option  of  the  Government  in.ste 
of  running  for  fifty  years  as  represented  by  t 
Greenback  element. 

All  these  good  works  have  been  accomplished 
spite  of  the  “ untiring  vigilance  in  our  Xation 
Congress  of  the  ‘indomitable’  Weaver,  Gilleti 
and  the  ‘ devoted  ’ DeLaniartyr,”  who  are,  thai 
God,  no  longer  in  Congress  to  air  their  deinagogei 
and  obstruct  wise  legislation  by  tilibustering  ta 
tics  that  cost  the  Government  more  than  all  the  e: 
pense  of  the  refunding  operations. 

When  the  funding  bill  was  before  Congress  thei 
was  a division  of  opinion  as  to  whether  the  ne' 


61 


Ujans  should  run  five,  ten,  and  fifteen  years,  or  ten, 
m fteen,  and  thirty  years,  and  it  is  a curious  fact 
ii  aat  those  who  are  now  the  bone  and  sinew,  ner\'e, 
ol  jnd  muscle  of  the  Greenback  party  insisted  upon 
<iae  longer  period,  which  was  finally  agreed  upon 
"I  [)!•  two  reasons.  First,  because  it  Avas  thought  that 
ill  pe  new  bonds,  with  reduced  interest  rate,  would 
■1  ,ot  sell  at  par  unless  running  for  a longer  period  ; 
■rt  nd,  second,  because  our  legislators,  not  being 
Isirophets,  could  not  possibly  foresee  the  unexam- 
li  |led  prosijerity  of  the  cormtry  under  a protecti-s'o 
t ariff  that  was  then  scarcely  in  operation,  sanguine 
i(js  were  their  expectations,  and  were  therefore  not 
rery  hopeful  of  being  able  to  redeem  them  sooner, 
i;  They  knew  that  England’s  debt  had  not  decreased 
j)  Ippreciably  to  the  naked  eye  in  the  last  forty  years, 

, pid  taking  that  great  nation  as  an  example,  it 

I eemed  preposterous  to  expect  to  redeem  the  whole 

II  if  our  debt  in  less  than  thirty  years. 

j And  now  behold  the  facility  with  which  the  grccn- 
f jiack  theory  can  turn  somersaults,  for  this  writer 
I urns  a double  somersault — metaphorically  I mean 
[-when  she  refers  to  the  funds  deposited  with  the 
[National  ijanks,  of  which,  she  declares,  they  have 
fee  use,  as  a part  of  the  available  cash  that  is  heing 
:ept  from  the  people,  seemed  to  forget  that  by  this 
'ei’y  means  a great  part  of  it  is  kept  in  circula- 
ion,  and  that  the  bonds  owned  by  the  banker  afore- 
;aid  are  a part  of  the  very  debt  she  would  pay. 

This  money  was  not  coin,  to  begin  with,  but  the 
drculating  medium  of  the  time,  which  was  paper, 
xnd  therefore  not  available  in  payment  of  the 
bonds ; for  the  banks  in  question  were  compelled 
jy  statute  to  receive  at  par  all  kinds  of  National 
purrency  bills  by  whatever  association  issued  that 

I 


G2 


liad  been  ])aid  for  internal  revenue,  or  for  loans 
stocks.  And  tliey  vcre  not  granted  its  free  use 
the  second  place,  for  although  no  interest  in  inon  I 
was  required,  the  associations  designated  as  su 
depositories  were  required  to  render  service  1 [o: 
their  privilege,  which  more  than  covered  any  pro  t.; 
they  could  get  out  of  it,  and  in  fact  the  only  cle  it, 
advuintage  they  received,  was  the  confidence  j; 
their  patrons,  which  was  naturally  strengthein  ( 
by  tlie  fact  that  the  association  were  the  financi  ;e 
agents  of  the  Government.  The  dreadful  bugalx  [jj 
of  the  peo])le  paying  said  interest  is  “ slush  ” of  tl 
same  quality  that  runs  all  through  the  Greenbac 
doctrine. 

There  was  no  interest  in  the  case  except  thatpai 
Ijy  those  who  borrowed  the  money  from  the  ban 
for  their  x)ersonal  use,  and  it  is  common  for  peopl 
to  x)ay  interest  on  their  own  debts  I believe;  buti 
this  case  the  interest  jjaid  acted  in  a double  capac; 
ty  for  it  was  all  the  pay  the  banker  received  fo 
his  services  to  the  Government,  and  to  cover  th 
outlay  such  services  engendered  ; so  that  after  al 
he  merely  used  the  Government  money  as  anagen 
of  the  Government  in  making  payments  to  publi 
creditors. 

These  associations  could  not  lend  money  out  o 
this  fund  till  the  deposits  were  above  a stated  sun 
which  they  kept  as  a reserve,  and  the  interest  o 
that  loaned  was  seldom  if  ever  more  than  enougl 
to  pay  for  the  labor  and  expense  of  the  transporta- 
tion of  monies  to  the  sub-treasury  as  required  by 
the  secretary^.  And  the  Government  by  this  ar- 
rangement saved  the  trouble  and  expense  of  ship- 
ping the  money  as  fast  as  colleeted  all  the  way  to 
Washington,  Chicago,  or  some  of  the  other  sub- 


(J3 


'*j ’easnries,  these  bank  depositories  being  chosen  in 
^ laces  remote  fi-oiii  such  conveniences. 

' Besides  all  this,  these  associations  are  compelled 
give  security  by  the  deposit  of  United  States 
* 'onds  for  the  safe  keeping  and  prompt  payment 
If  the  public  money  deposited  with  them,  and  for 
I'’  he  faithful  performance  of  their  duties  as  financial 
gents  of  the  Government ; and  every  Aay  they 
’biust  transfer  to  the  subtreasury  all  monies  re- 
•“teived  in  excess  of  the  face  value  of  the  bonds 
'leld  in  trust  by  the  treasurer  of  the  United  States, 
I*  o secure  public  deposits. 

‘ I Thus,  instead  of  hiring  salaried  officers  to  handle 
die  money  and  attend  to  this  necessarj'  work,  our 
‘ rise  laws  have  fixed  it  so  that  this  cash,  that  would 
•■Ithe  1 wise  be  idle,  is  kept  in  circulation,  and  mailo 
*b  pay  its  own  expenses,  with  the  use  of  the  con- 
Genient  bank  check,  instead  of  cumbersome  cash. 

‘ Thus  you  see,  it  is  by  the  very  same  double- 
mder  arithmetic  with  which  they  made  the  bonds 
Increase  the  bulk  of  greenbacks,  under  the  Act  of 
iVpril  12,  1866,  that  these  Populists  again  attempt 
^ to  eat  their  pie,  and  have  it,  too,”  by  counting  the 
[leposits,  after  they  had  already  counted  tlie  bonds 
hat  secured  them.  If  these  facile  people  can  find 
neans  to  make  a man  pay  himself  for  his  own  la- 
)or,  especially  after  all  the  money  has  been  ere- 
nated,  tliey  can  take  the  laurels  of  our  ITercules, 
ind  we  will  turn  him  into  a weasel,  along  with  his 
nother.  And  if  they  should  wait  till  our  debt  is 
;wo  centuries  old,  like  England’s,  I do  not  think 
diey  would  find  another  back-action  hand-spring 
3qual  to  the  one  they  advise. 

! But  tlie  bonded  indebtedness  of  our  country  will 
lever  reach  to  quarter  the  age  of  that  of  its  re- 


r,4 


spected  sire,  for  hitherto  it  lias  decreased  with  ® 
regularity  equal  to  that  with  which  the  Greenback  ^ 
counts  double,  and  by  the  natural  result  of  thisd  '■ 
creasing  arithmetical  progression,  we  will  come  ^ 
the  end  by  and  by,  in  spite  of  the  issue  of  bone  ‘ 
by  the  present  administration.  ^ 

This  oft  mistaking  party  makes  another  mi  ^ 
take,  also  ; for  it  is  not  the  bonded  debt  of  Englar 
that  fills  her  lanes  and  byways  with  tlie  ignorai  * 
and  degraded  toilers,  but  a lack  of  the  same  wii  ^ 
protective  tariff  wliich — please  God,  to  ^Yhonl  h 
us  earnestly  pray  to  protect  us  from  the  pre.ser 
midsummer  madness  of  1894  of  our  Deinoerati 
legislators — will  compel  the  foreigner  to  jjay  ou 
debt  for  us  vrithout  taxing  our  own  people,  wh 
ha^'o  been  growing  every  year  more  and  mor 
prosperous  under  its  beneficent  influence ; an< 
we  can  well  afford  to  pass  the  pension  Ijills,  a 
which  our  Populist  sister  sneered,  quite  forgetfu 
of  the  poor  soldier  that  she  served  up  with  cape 
sauce  in  some  of  her  diatrilies  against  their  bes 
friends,  the  Reiniblicans.  The  Republican  partj 
is  willing  to  shoulder  tliis  “ pension  fraud  ” anc 
“educational  fraud”  and  all  the  rest,  even  tin 
“ coast  defenses,  ” which  may  be  found  useful  whei 
least  expected. 

Why,  wo  have  an  object  lesson  right  in  oiu 
midst,  of  the  advantage  of  taxing  the  outsider,  in- 
stead of  the  citizen.  The  Cherokee  Nation  long 
ago  adopted  that  principle  and  are  growing  ricli  in 
consequence. 

I was  talking  to  a most  intelligent  lady  of  that 
race,  who  is  a large  cattle  raiser.  You  would  all 
know  her  were  I to  give  her  name  ; and  she  told 
me  so.  I asked  her  what  taxes  she  paid,  and  was 


I lazed  to  hear  that  none  of  her  property  was 
, s;ed,  nor,  in  fact,  the  propert  j'  of  any  other  Chcr- 
,ec  citizen.  “ Why,  how  do  you  get  money  to  run 
p government?”  I asked.  “ We  collect  it  from 
B wliite  men  who  trade  with  us,”  was  her  calm 

ply- 

But  we  have  higher  authority  still  for  the  wis- 
■m  of  the  protective  tariff.  Let  me  point  to  tlie 
[idlings  of  the  great  philanthropist  Christ,  wlien 
I said  to  Peter  : 

‘What  thinkest  thou,  Simon;  of  whom  do  tlie 
pgs  of  the  earth  take  custom  or  tribute?  of  their 
m cliildren  or  of  strangers?” 

^nd  Peter,  answering;  “Of  strangers.”  Jesus 
id,  “ Then  are  the  children  free.” 

[f  the  Indians  are  the  lost  tribes  of  Israel,  as 
[ine  suppose,  they  are  only  following  their  ancient 
istom,  it  seems. 

In  the  mean  time,  here  is  another  indication  of 
s superiority  of  our  system  over  that  of  England, 
pitistics  sliow  that  the  savings  banks  of  nine 
ates  alone  have  increased  their  deposits  §628,000,- 
^ in  nineteen  years,  while  the  savings  banks  of 
I England  liave  only  increased  theirs  §;lo0, 000,000 
thirty-four  years. 

A.S  to  the  mortgage  story,  tliat  is  almost  too  mucli 
I a chestnut  to  notice,  for  it  lias  been  proven  over 
d over  tliat  mortgages  are  decrea.sing  instead  of 
creasing  in  most  of  the  States  as  compared  to  the 
crease  of  population  and  value  of  real  estate. 

It  has  been  proven  also  that  a mortgage  indebt- 
ness  is  far  oftener  a sign  of  prosperity  than  oth- 
wiso  by  the  fact  that  as  business  increases  inort- 
•ges  are  sure  to  increase  also.  With  this  increase 
business  we  have  more  mercliandise  that  we 


have  money,  so  we  have  credit  money  represent 
l)y  the  mortgages,  and  many  undertakings  are  ca 
ried  through  now  that  never  were  dreamed  of  in 
olden  time  v/hen  a mortgage  was  thought  a great 
evil  than  the  yellow  fever,  and  when  people  we 
content  to  plod  along  with  all  the  money  they  pn 
sessed  tied  up  in  the  liouse  they  lived  in,  and  ther 
fore  bringing  in  no  income. 

Tlie  bright  man  of  tliis  progressive  age  takes  a' 
vantage  of  the  trust  he  can  command  with  liis  re 
estate  sectirity,  gets  the  money  to  go  into  busine 
for  himself  instead  of  slaving  for  somebody  els 
and  gets  rich.  Quite  often,  too,  witli  the  mortga; 
still  unpaid  on  his  house,  because  the  dividends 
brings  him  are  too  great  to  yield  by  drawing  tl 
sum  out  of  his  business  only  to  satisfy  a sentimei 
tal  desire  to  have  the  home  clear.  He  is  as  muc 
master  of  the  house  as  if  it  were  clear;  he  ea 
change,  improve,  rent,  or  sell  it  just  the  .same;  I 
pays  no  more  taxes  or  insurance  because  of  tl 
mortgage,  and  the  interest  he  pays  can  be  doubl 
covered  by  the  profits  out  of  his  investment. 

Looking  over  the  olijects  of  the  mortgage  ii 
dobtedness  of  some  of  t!ie  States,  according  to  tl 
la.st  census,  I find  “purchase  money,”  for  many 
man  gets  his  home  in  the  first  place  liy  giving 
mortgage  for  deferred  payments ; “ improvement 
business,  to  buy  more  land,  to  buy  farm  stock.  1 
help  sons,  etc.,  wliile  out  of  whole  counties  but  on  i 
or  two  poor  fellows  would  be  found  that  had  t 
borrow  money  for  family  expenses,  ^sow  an 
then  we  find  one  engaged  in  speculation  ; and  o< 
c.asionally  a loss  from  indorsing  for  a “friend, 
lint  as  a general  thing  the  mortgage  is  tlie  hai 
binger  of  good  times. 


CHAPTER  VII. 


SIXTH  DKED  OF  VALOR— THE  COINAGE  ACT. 

When  Hercules,  in  destroying  the  Centaurs,  ac- 
identally  slew  his  former  preceptor,  Chiron,  to 
rhom  tlie  others  had  tied  for  protection,  he  had 
lini  translated  among  the  constellations;  and  just 
()  with  this  modern  hero. 

A revision  of  our  coinage  becoming  necessary, 
,n  act  to  that  elfcct  became  a laAV  Feb.  12,  1873. 
,’his  is  the  half-dozenth  fallacy  according;  to  the 
pistle  of  tlie  apostle  St.  Greenback,  who  makes 
[Ut  of  it  another  so-called  contraction  that  failed 

0 contract  anything,  not  even  the  weight  of  the 
ollar. 

1 The  silver  dollar  ot  the  United  States  has  a 
piique  history,  and  its  ups  and  downs  are  equal  to 
he  Geenbacker’s  arithmetic.  It  was  first  coined  in 
793, its  weight  in  standard  silver  HG  troy  grains;but 
tdid  not  make  a very  great  show,  as  only -3204,791 
rere  coined  in  the  first  three  years.  For  ten  years 
jiore  it  hung  on  by  its  eyelids,  as  it  were,  till  in 
p05,  when  it  was  suspended,  only  §321  being  issued 
liat  year.  We  see  no  more  of  it  after  that  till  in 
83G,  when  it  apjiears  again  in  a condition  decided- 
Y the  worse  for  its  battle  with  the  two  decades  that 
ad  intervened,  in  an  issue  of  31,000;  and  that 
3emed  to  be  the  last  three,  for  again'  it  disappear- 
d till  after  the  act  of  January  18,  18.37,  had  anthor- 
;ed  a new  issue  of  dollars  with  weight  reduced  to 
121  grains  of  standard  silver. 

I Of  these  none  -were  issued  till  18.39,  when  3-300 
ippcd  the  shell ; and  after  that  until  1853  the  dol- 

67 


C8 


lar  lliictuated,  reaching  into  the  thousands  final 
wliile  the  minor  coins,  coined  by  act  of  a Den 
cratic  Congress,  began  to  supersede  it,  thus  prac 
cally  demonetizing  it;  tiil  in  1858  the  dollar  disj 
peared  once  more,  leaving  the  minor  issues  largt 
increased.  In  1859  the  issue  begins  again  and  cc 
tinues  till  1873,  dividing  the  honors  Avith  tlie  ni 
trade  dollar  that  year  and  then  disappearing! 
four  yeai-s  more.  For  the  silver  contained  in  ea 
of  these  coins  was  worth  more  than  one  hundr 
cents,  and  most  of  them  had  been  melted  and  .sold 
bullion,  so  there  were  very  few  left  in  this  counti 
And  even  those  few  were  amply  protected  bj' t 
law  itself,  for  it  reads;  “That  this  act  shall  not 
construed  to  affect  any  act  done,  right  accrued, 
penalty  incurred,  under  former  acts,  but  eve 
such  right  is  hereby  saved,  etc.  ” And  thus  t 
old  woman  who  had  a standard  dollar  hidden  aw; 
in  a .stocking  could  serenely  enjoy  the  knowled: 
that  it  was  still  legal-tender,  as  much  as  it  h; 
been  before.  It  was  absolute  nonsense,  thercfoi 
to  talk  of  our  silver  dollar  of  4121  grains  being  d 
monetized  by  England  till  it  was  not  worth  ; 
much  as  the  gold  dollar,  when  we  had  none 
England  ; for  even  the  trade  dollar  did  not  jouriu 
thither.  Up  to  this  time  the  whoie  issue  of  th 
“doilar  of  the  daddies  ” was  but  88,012,.338.  X 
very  many  dollars  to  be  demonetized  after  all. 

In  fact,  we  were  on  a p.iper  basis  anyhow  ; not 
dolhir  of  specie  had  been  in  circulation  for  tweU 
years  except  that  on  the  Pacific  coast  and  in  Texa 
and  the  dollars  that  had  been  issued  were  only  ft 
the  convenience  of  foreign  trade  ; and  in  this  pa; 
tieular  the  American  412Egrain,  with  its  bullio 
> aluc  greater  abroad  than  its  face  value,  had  t 


(>1) 


lit  the  Mexican  dollar  with  its  418  grains  of  sil- 
r.  So,  when  the  revision  of  the  coinage  was 
ing  on,  the  people  of  the  Pacitic  coast  asked  for 
inething  that  might  stand  a better  chance  with 
j people  of  China  and  Japan,  where  the  Mexi- 
a dollar  was  a great  favorite, 
fhe  Legislature  of  California  sent  a petition  to 
it  effect,  and  on  motion  of  her  Senators  the  old 
liar  was  drojiped,  and  a trade  dollar,  with  two 
>re  grains  of  silver  than  the  iSlexican,  was  is- 
?d,  to  he  used  in  foreign  trade  alone.  This  trade 
liar  was  also  worth  less  than  the  silver  in  it ; 
t it  was  hoped  that  the  profit  accruing  from  the 
ide  canght  by  it,  would  compensate  the  loss. 
■is  act  7vas  passed  bij  the  unaniynous  vote  of  both 
iscs  of  Congress,  tvithouf  the  faintest  objection 
in  any  one  of  either  party — not  even  from  the 
ating  Greenbacker  that  had  Iregun  to  chirp 
long  them.  Does  it  not  seem  a little  late  in  the 
y for  them  to  begin  now? 

I’he  trade  dollar  was  never  in  circulation  any 
ire  than  the  old  dollar  had  been  for  some  time, 
tl  not  as  much,  for  it  did  not  even  circulate  on 
! Pacific  coast,  because  it  was  not  a full  legal- 
^der  even  at  first,  and  the  five  dollars  worth, 
bwed  it  when  created,  had  been  revoked  before 
( resumption  of  specie  payments.  Thus  nobody 
uld  receive  it  for  domestic  supplies,  and  as  it 
3 soon  ascertained  that  the  Chinese  and  Jajis, 
[|o  are  inclined  to  be  wedded  to  their  traditions, 
;pld  not  take  it  either,  and,  as  it  was  found  also, 
,t  certain  of  our  people  had  secured  the  right  to 
in  it  by  representing  that  they  wanted  it  for  for- 
n trade,  and  then  were  unlawfully  using  it  in 
I i"ing  off  the  working  people  in  their  employ. 


70 


all  these  thiugs  operated  to  secure  its  ^vithdra■^ 
and  the  restoration  of  the  old  Standard  dollar 
fore  the  resumption  act  went  into  force.  .Just  h 
it  managed  to  agitate  business  circles,  therefore 
hard  to  discover. 

Tlie  Gi-eenbacker  says  it  destroyed  the  moi 
quality  of  silver,  but  it  was  Iiard  to  destroy  t 
which  did  not  exist.  There  were  825,000,(K)0 
specie  in  circulation  on  the  Pacific  coast,  and  n< 
in  the  Treasury  when  the  coinage  act  was  passi 
of  tliis  less  than  one-fifth  was  silver ; and  dur 
the  four  years  that  the  standard  dollar  was  dropj 
from  coinage,  there  were  $75,904,092.70,  of  siU 
coined  at  our  various  mints.  This  seems  a qu 
kind  of  destruction.  He  says,  also,  that  the  obj 
was  first  to  prevent  tlie  payment  of  the  bonds,  a' 
second,  to  increase  their  value,  because  it  addoc 
tlie  value  of  the  gold  in  which  these  bonds  were 
be  paid.  Now  let  us  see  if  this  was  the  case. 

In  1873  a gold  dollar  was  worth  $1.14,  while 
ounce  of  silver  was  worth  in  London  $1,298. 
1874  the  gold  dollar  had  dropped  to  $1.11,  and  sib 
was  worth  $1,278,  so  that  notwithstanding  the  f 
that  silver  had  declined  as  it  had  been  doing  i 
lluctuating  manner  since  1800,  the  gold  dollar  1 
declined  also,  and  the  balance  was  in  favor  of  •• 
ver,  which  was  worth  11  cents  more  in  gold  doll 
in  1874  than  it  was  in  1873. 

I am  informed  by  the  director  of  the  mint  t 
this  was  no  evidence  of  the  decline  of  the  value 
gold  ; but  that  the  greenbacks  and  legal  tern 
notes  had  appreciated  in  value.  Thus  proving  tl 
the  lluctuations  in  the  value  of  the  greenback  w 
due  to  the  pulse  of  the  world's  confidence  in  < 
Government,  as  I have  pireviously  claimed,  a 


71 


it  all  the  misfortunes  of  the  inan  ivho  invested 
greenback  currency  when  it  was  depreciated  in 
lue  were  no  fault  of  those  who  were  doing  their 
•it  to  restore  that  confidence  ; but,  if  anybody’s 
lit  at  all,  was  the  fault  of  his  own  mistaken  judg- 
ent. 

Sir.  Leach  further  states  that  a given  amount  of 
Id  would  be  paid  for  at  any  mints  in  the  world 
the  same  rate  for  the  last  fifty  years, 
riie  silver  in  the  dollar  of  INIT  was  worth  no  more 
the  markets  of  that  period  than  that  contained 
the  trade  dollar  of  1S72,  according  to  the  market 
1873,  althougli  the  latter  coin  weighed  seven  and 
e-half  grains  more,  and  the  lack  of  the  legal- 
' ider  quality  was  all  that  made  the  difference,  and 
s was  not  at  all  a necessary  quality  for  the  pur- 
'seof  foreign  trade. 

' Che  rise  and  fall  of  the  price  of  silver,  as  in  gold, 
•occasioned  by  the  supply  and  demand  like  any- 
iig  else,  and  the  downward  tendency  of  silver 
d kept  almost  even  pace  with  the  increase  of  pro- 
iction.  The  amount  of  silver  ]n-oduced  in  the 
'iited  States  I'rom  1834  to  1844  was  814,000,000,  while 
T873  alone  it  was  871,750,000.  And  all  this  time 
'b  price  per  ounce  had  iluctuated  with  the  ebb 
^ll  How  of  the  production;  and  although  the  mar- 
*t  value  of  gold  is  fixed  bj’ the  markets  of  the 
hole  world,  history  proves  that- even  that  royal 
kal  may  be  moved  by  the  same  power,  and  at 
lb  time  its  over-production  made  it  of  less  value 
f atively  than  siver. 

1 ^t  all  events,  gold  did  not  increase  in  value  after 
It},  for  it  went  steadily  down,  and  the  circulating 
hdium  did  not  decrease  in  the  United  States 
'Tier,  for  there  was  an  increase  in  the  circulating 
1 


72 


papei'  money,  the  general  stock  of  1873  being  $74 
445,010,  while  in  1874  it  was  ?781,024,7S1,  in  spite 
the  retirement  of  bank  notes,  and  fractional  ci 
rency,  with  §25,000,000  of  specie  on  the  Pacific  co: 
added  in  both  cases.  There  was,  however,  a ve 
slight  decrease  per  capita  for  a few  years,  becai 
the  sudden  boom  given  to  immigration  by  t 
prosperity  of  our  country  under  our  protecti 
tariff  increased  the  population  faster  than  mon 
increased,  till  resumption  sent  a flood  of  gold  a 
silver  to  accelerate  the  pulse  of  the  Nation.  T' 
aggregate  of  immigrants  for  the  decade  immei 
ately  preceding,  which  ended  with  1870,  had  Ije 
2,314,824,  an  annual  average  of  231,482;  while! 
decade  in  which  these  silver  changes  took  pla 
ending  with  1880,  the  aggregate  was  2,812,191, 
average  number  of  281,219. 

But  in  1878  the  old  dollar  was  restored  with  co: 
age  limits,  not  exceeding  §4,000,000,  nor  less  th 
§2,000,000  per  month,  and  under  this  law  in  a peri 
of  twelve  years  we  issued  400,000,000  silver  dolla 
fifty  times  the  number  that  had  been  coined  pr; 
to  1873  ; so  that  the  “ scheme  ” consummated 
those  “civilized  brigands”  has  resulted  in  maki 
the  money  bt  the  common  people  more  plenti: 
than  ever.  The  entire  issue  of  silver  dollars  up 
1873  was  but  §6,165,738  ; and  the  whole  issue  of  tra 
dollars  was  birt  §35,965,924, with  §296,600  of  the  < 
d(^l  lars  : while  the  issue  of  1890  alone  was  §38,04 
004,  to  say  nothing  of  the  minor  coins.  And  t 
coinage  of  1890  cireidates,  too,  which  the  torn 
did  not. 

The  Third  Party  j)rophet  tells  anotlier  of  1 
fairy  stories  about  the  English  capitalists  scndi 
one  Ernest  Seyd  to  this  country  to  act  as  god-fatl 


T6 


' the  demonetization  of  our  silver  and  declares 
lat  the  original  draft  of  the  bill  was  in  his  hand- 
riting,  giving  Jxrdge  Kelley  as  her  authority.  As 
31-  authority  in  this,  like  the  poor  felloxys  whom 
leattacksin  her  fifth  chapter,  and  those  shequotes 
i most  other  places,  is  dead,  he  can  not  speak  for 
iinself ; but  Senator  Sherman,  who  was  chairman 
' the  Finance  Committee  at  that  time,  and  there- 
re  chairman  of  the  Conference  Committee,  says 
!e  statement  is  not  true ; and  from  Mr.  E.  O. 
pech,  I have  receix'ed  the  following : 

fhe  coinage  act  of  1ST3  was  prepared  by  John  Jay  Knox, 
pu  deputy  comptroller  of  the  currency,  who  was  assisted  in 
L*  prepaialion  of  it  by  Dr.  H.  R.  Linderman,  under  the  di- 
ction of  the  Secretary  of  the  Treasury.  The  bill  was  pre- 
red  v.'itli  great  care,  and  after  voluminous  correspondence 
numerous  consultations  with  officers  of  the  mint  and 
hers.  The  assertion  that  Ernest  Seyd  had  anything  to  do 
th  the  preparation  of  the  hill,  or  with  its  passage,  is  not 
rne  out  by  the  records,  and  it  is  not,  believed  that  he  was 
'en  consulted  in  the  matter. 

jAt  all  events  they  must  have  given  him  a very 
|ng  range  if  they  did  consult  him,  for  it  has  lately 
^en  discovered  that  he  was  not  even  in  the  country 
that  time;  and  if  he  had  been,  he  was  himself  a 
ost  earnest  bimetallist,  and  had  written  several 
>oks  on  the  .subject,  favoring  the  use  of  both 
ctals  as  money. 

So  much  for  that,  now  for  the  wheat  story.  First 
I (d  foremost,  India  has  the  wide  world  for  her 
j iieat  market,  and  would  be  apt  to  kick  vigor- 
j sly  against  a 20  per  cent,  discount  on  the  dollar 
e received  in  payment ; and  as  gold  went  down 
I ong  with  the  stiver,  England  missed  her  10  per 
I int.  also  in  America  ; and  she  can  have  the  sup- 
1 ies  of  this  country  only  when  she  pays  a fair 


74 


price  for  the  same.  In  fact,  1 think  tlie  lady  ir 
liave  had  a generous  slice  of  English  iiluin  p 
ding  for  her  supper  when  she  had  that  visioi 
murder,  insanity,  suicide,  divorce,  drunkenn 
etc.,  and  thus  got  the  English  pence-earncr  in 
wrong  country. 

And  the  payment  of  the  bonds  was  not  even 
tarded  in  the  end  anymore  than  the  gold,  in  wh 
tiiey  were  paid,  increased ; for  the  redemptioi 
the  public  debt  went  on  with  a general  inci'e; 
though  with  the  usual  fluctuations,  with  the  ret 
I have  rehearsed  in  the  preceding  chapter. 

As  to  what  the  Rothschilds,  Hazzard  and  of 
London  financiers  did  according  to  these  croake: 
thougli,  to  begin  on,  the  Rothschilds  were  no; 
possession  of  several  hundred  millions  of  the 
bonds — it  would  be  no  new  thing,  if  true ; foi 
matter  ndiat  party  is  in  power  here  or  what  pul 
policy  is  being  discussed,  England  always  in 
feres,  because  she  knows  “which  side  of  her  br 
is  buttered,”  and  our  growing  independence  i 
matter  of  serious  moment  to  her,  for,  while  we 
get  along  excellently  well  without  her,  she  can 
do  without  us.  Sometimes  her  advice  is  good  ; 
then  we  take  it,  because  it  is  no  new  thing  ft 
matter  to  be  to  our  mutual  international  advantf 
and  only  a demagogue  of  the  most  rabid  type  wo 
think  it  incumbent  on  our  patriotism  to  snub 
neighbor  then  ; especially  as  we  are  masters  of 
situation. 

If  England  could  set  her  own  prices  on  the  go 
she  sells  in  our  markets,  adding  the  duty  pak 
our  Government  to  the  price  she  compels  our  p 
pie  to  pay  to  her,  would  she  go  to  all  this  trou 
and  expense  to  influence  our  legislators  in  tl 


hancial  legislation,  or  the  tariff,  cither?  It  is 
d|  )snrcl. 

piriie  Ltondon  Standard  wafi  about  right  when  it 
ijjiid  that  had  the  IMills  bill  passed  it  would  have 
m sen  worth  £100,000,000  per  annum  to  tlie  British 
11  anufacturers.  That  is  just  $480,050,000  brought 
'er  to  the  American  profit  side  by  our  protection 
D easure ; please  take  notice  by  the  way.  Why 
ifuld  it  be  worth  a cent  to  them,  one  way  or  an- 
il her,  if  we  paid  their  duty  for  them? 

K If  England  risked  half  a million  on  our  coinage 
I’i  gislation  she  is  not  the  first  who  has  speculated 
iid  lost,  as  all  ai'c  sure  to  do  who  expect  to  find 
It  Sleep  such  men  as  ?vtorrill,  Sherman,  Allison,  Ald- 
11  ch,  and  others  who  were  at  the  head  of  our 
)l  lances. 

liAstothe  price  of  silver  in  London,  it  has  gone 
town  more  rapidlj’  since  the  restoration  of  the 
[tigal  dollar  than  it  did  before,  falling  from  $1,298 
4 1873  to  $1.04033  in  1890,  which  is  a natural  result 
sf  the  increased  supply  and  the  cheaper  processes 
if  its  production.  For  even  Greenbackers  can  not 
iliarge  demonetization  upon  it  now,  when  all  our 
loeey  is  of  equal  value,  although  the  silver  pur- 
fiasing  clause  of  the  Sherman  law  has  been  repeal- 
1 by  the  present  Congress  ; a step  thought  neces- 
iry  by  the  present  administration,  for  two  reasons : 
lirst,  with  tiie  improved  output  of  our  mines,  the 
apply  was  increasing  tremendously,  and : Second, 
le  demand  was  decreasing  in  the  Indian  and 
.siatic  countries  to  .such  an  extent  that  our  Treas- 
ry  would  soon  have  been  buried  under  its  own 
fealth  of  silver  without  the  co-operation  of  Europe. 
Lnd  that  it  is  hoped  this  step  on  our  part  will  soon 
pmpel  to  come  to  us;  and  on  my  own  re.sponsi- 


70 


bility  I promise  tliat  tlie  Republican  Party  will 
right  by  silver,  in  common  with  every  other  Air 
icaii  industry. 

In  the  coinage  of  nations  the  United  States  iss 
more  silver  than  any  other,  except  India  that  co 
no  gold.  But  Great  Britain,  Australia,  (terma 
and  Russia  coin  more  gold  than  the  United  Stal 


CHAPTER  Till. 


n 


EVENTII  TRIUMPH — THE  RESUMPTION  OF  SPECIE 
PAYMENTS. 

I stnml  witli  inv  head  uncovered  and  reverently 
bent,  helbre  the  matchless  wisdom  that  so  guided 
Dur  affairs  through  all  these  perils  that  not  even 
this  last,  most  ditflciilt  and  delicate  operation 
harmed  the  people,  though  the  seventh  Populist 
‘ conspiracy.  ” 

All  onr  trade  had  adjusted  itself  to  a paper  basis. 
On  that  manufacturers  were  producing  ; and  mer- 
chants buying  and  contracting  for  goods  ; farmers 
operating  their  crops ; artisans  contracting  for 
work  ; and  the  poor  depending  on  the  daily  wage 
that  could  not  hear  a discount,  a wage  not  what  it 
was  under  the  McKinley  law,  although  higher  than 
at  any  time  before  the  war. 

But  things  could  not  go  on  so.  Ten  years  had 
elapsed  since  the  close  of  the  war ; our  people  had 
almost  forgotten  how  silver  and  gold  money 
looked,  and  our  paper  money  was  wearing  its 
credit  out  abroad,  for  no  country  can  stand  a paper 
basis  long. 

! Hercules  being  commanded  to  gather  the  golden 
apples  in  the  garden  of  Hesperides,  slew  the  sleep- 
less dragon  guarding  them,  and  bore  the  treasure 
away  in  triumph. 

The  dragon  that  hindered  us  from  gathering  this 
I golden  fruit  was  the  depreciated  value  of  the  cir- 
: culating  paper  money  with  which  our  people  had 
I been  doing  business ; for  although  gold  had  been 
steadily  declining  since  1864,  it  still  bore  a prem- 

77 


iiun,  which — gold  being  thS  standard  of  valnatiolj 
— of  course  reduced  tlie  value  of  paper  that  ws  I ' 
merely  a substitute,  and  not  even  its  represent?  j' 
tive  since  gold  was  not  paid  out  for  it.  | 

No  one  doubted  the  desirability  of  raising  th 
standard  of  our  money  value  by  calling  gold  an 
silver  into  circulation.  But  dare  we  do  it  ? 

For  tliose  out  of  debt,  the  good  would  be  un  , 
mixed  witli  evil ; and  for  those  receiving  salarie 
or  annuities  the  change  would  be  douldy  advan 
tageous.  But  for  tlie  debtor  who  would  have  t 
pay  his  debt  increased  by  the  increased  value  o 
Jiioney,  all  would  bo  a total  loss,  unless  he  wer 
the  owner  of  property  behind  his  debt,  that  woui( 
appreciate  in  value  also.  All  this  must  be  takei 
into  consideration,  for  the  change  must  be  made 
Already  had  it  been  too  long  delayed,  and  everj 
year  would  make  the  matter  more  ditBcult. 

But  mark  the  strength  of  our  Hercules  even  ii 
this,  his  most  dangerous  exploit. 

Tlie  first  step  taken  was  a speedy  coinage  oi 
minor  silver  coins,  which  were  gradually  issued  in 
place  of  the  fractional  currency,  beginning  this 
operation  the  \ory  next  year,  the  last  batch  being 
taken  up  in  1878. 

The  next  step  was  to  make  the  coinage  of  gold 
free,  thus  inducing  an  increase  of  gold  money. 

Next  the  limit  to  National  banking  operations 
was  removed,  and  it  was  so  arranged  that  for  every 
legal-tender  United  States  note  redeemed,  a bank- 
note should  be  issued,  with  a margin  left  of  ^100,- 
000,000  of  the  United  States  notes  outstanding. 
Thus  passing  the  danger  line  of  fiat  money  with- 
out contracting  anybody’s  purse  strings.  But  the 
climax  of  prudence  resides  in  the  fact  that  the  time 


79 


for  ;ill  these  operations,  when  the  tug  of  war 
should  he  reached  tjy  the  Secretary  of  the  Treas- 
ury redeeming  the  outstanding  legal-tender  notes 
was  extended  over  the  period  of  four  years  from  the 
passage  of  the  act,  which  was  approved  INIarch  3, 
1S75,  and  consummated  Januai’3’’  1, 1879,  thus  atford- 
ing  ample  time  for  the  people  to  erect  storm  de- 
fences. Bj’  this  means  business  men  were  able  to 
adjust  tlieir  business  to  the  new  order:  delators 
could  compound  with  creditors ; manufacturers, 
|inerchants  and  farmers  could  so  grade  their  prices 
I as  to  escape  loss,  and  had  no  need  to  cut  down  the 
wages  of  employes : in  fact,  the  wages  were  in- 
creased because  the  money  paid  was  worth  more. 

According  to  the  Popidist  statement,  the  reader 
who  is  not  posted  would  think  that  the  Govern- 
ment, in  order  to  buy  the  coin  necessary  for  these 
transactions,  had  tumbled  another  great  debt,  in 
the  shape  of  interest-bearing  bonds,  upon  the  heads 
of  a long  sutfering  people.  But  the  fact  is  that  the 
bonds  used  here  were  those  created  by  the  Act  of 
July  14,  1870,  when  the  debt  was  refunded,  and 
which  has  already  been  abused  enough,  in  all  con- 
sciejice. 

Let  me  say  it  again,  our  debt,  under  the  Repub- 
lican administration,  decreased  steadily  instead  of 
increasing;  it  is  a good  thing  to  reiterate,  since 
those  who  misrepresent  us,  have  been  ringing  the 
changes  on  this  false  statement  in  a hundred  differ- 
ent kej"s. 

Another  good  thing  to  repeat  in  this  connection, 
m view  of  tliese  repetitions  of  falsehoods,  is  that 
living  did  not  increase,  labor  did  not  decrease,  and 
he  amount  of  money  in  circulation  was  greate  ~ 
than  ever  before. 


80 


And  yet  another  matter  it  is  well  to  repeat  is  th;  ^ 
among  the  cash  which  is  represented  as  being  ke]  '• 
away  from  the  people,  by  being  locked  up  inti 
Treasury,  is  the  §100,000,000  of  gold  that  ^vas  ke]  X 
inviolate  to  the  last  by  the  Republican  administn  * 
tion,  to  secure  the  value  of  eertain  money  in  circr  ^ 
lation,  and  thus  prevent  possible  loss  to  tlie  peoph 
as  that  wliich  represents  it  is  nothing  but  pape;  ? 
otherwise. 

I do  not  know  where  these  people  get  their  fig  f 
ures,  but  certaiidy  not  from  statistical  puljlica  li 
tions.  ' 

They  say  that  tlie  money  all  told  in  theUnitei  ^ 
States  for  the  last  fiscal  year  (presumably  1887,  a ' 
the  second  edition  of  the  book  before  me  wa 
published  in  1888,)  was  §1,394,781,000  ; money  in  thi 
Treasury  January,  1876,  was  §C01,102,318.10,  and  lia( 
increased  since  that  date  at  least  8100,000,000,  witi 
§369,475,385  more  in  the  banks,  making  a gram 
total  locked  up  of  ^§l,O70,577,703,  leaving  among  the 
])eople  the  paltry  sum  of  §324,103,297 ; which,  dividec 
among  60,000,000  people,  gave  a per  ca]5ita  of  §5.40 
Now,  the  facts  are  these:  In  1887,  the  general 
stock  of  money  in  the  United  States  was  §l,tKJ0,- 
442,672;  that  in  the  Treasury  was  §582,903,529;  in 
circulation  §1,317,.539,145.  The  population  was  58,- 
680,000.  Circulation  per  capita,  therefore,  §22.45. 

3'hey  state  farther  that,  at  the  close  of  the  war, 
we  had  in  circulation  about  §2,000,000,(XX),  including 
three  per  cent.  Treasury  certificates,  compound  in- 
terest notes,  and  seven-thirty  bonds,  all  of  which 
entered  into  the  circulating  medium  ; and  that  this 
divided  among  a population  of  40,000,000  gave  a per 
capita  of  about  §50.  1 

The  truth  is  that  at  the  close  of  the  war  in  1865, 


[;  ve  had  exactly  §714,702,995  in  ciiculation,  a per 

iapita  of  §20.57. 

There  never  has  been  in  the  history  of  this  coun- 
ry  a circulation  of  §.50  per  capita,  or  any  other 
ountry,  save  France,  vhere  they  liavc  no  banks, 
xcept  in  the  principal  cities,  and  there,  where  a 
; pank  is  made  of  the  pocketbook,  the  circulation 
: »er  capita  is  about  §57. 

The  hiijhest  ever  known  here  is  the  circulatioir  of 
; I'ebruary  1,  1892,  when  it  was  §24.70.  The  Eepub- 
j icans  went  out,  leaving  it  almost  double  what  it 
,vas  when  they  came  in— namely,  §lo.8o  in  18G0. 
But  it  is  already  going  down  under  Democratic 
■ule,  being  but  §24.19,  on  the  1st  of  August,  1894.  A 
rer  capita  based  upon  the  entire  money  of  the  coun- 
ii-y,  in  1865  was  but  §22.16,  and  in  1887  it  was  §.32.-19. 

Another  reiteration  is  found  necessary  right  here. 
None  of  the  bonds  mentioned  above  were  in  circu- 
lation at  that  tinie.  A man  would  have  been  a fool 
to  pay  out  for  daily  expenses  a note  bearing  ac- 
crued interest,  especially  compounded  interest,  for 
these  bonds  became  too  valuable  in  a short  time  to 
be  parted  from  lightiy. 

Indeed  I am  weary  of  the  necessity  of  refuting 
over  and  over  again  the  misstatements  that  are  re- 
peated on  every  page  of  this  Populist  literature  (?) 
and  it  is  almost  too  much  to  hear  them  “ pointing 
iwith  pride  ” and  exclaiming: 

' “With  these  figures  before  us  who  can  doubt  the 
real  cause  of  business  stagnation,  and  the  rapid  in- 
crease of  pauperism  and  crime?”  It  is  not  stated 
where  the  paupers  and  criminals  were  at  that  time. 
We  all  know  where  they  are  now,  since  the  fuss 
these  Populists  made  have  helped  to  down  the  best 
Friends  of  the  people,  the  Republicans. 


82 


IjuI  with  tiie  ti'ue  figures  before  us,  it  is  not  li;  ,;i 
Ic)  fill  1 the  cause  of  the  opposite.  Since  the  ! 
suiiiplion  Act  we  have  in  the  United  States  a ^ 
kind  of  money  the  people  want.  There  are  g'  , 
and  silver,  nickel  and  copper,  and  paper  money  ^ 
many  forms — United  States  notes,  Xational-lja 
notes,  gold  certificates,  silver  certificates,  a j 
Treasury  notes,  all  at  par  witli  gold— and  there  is  j, 
danger  of  the  crisis  so  airily  suggested  for  our  coi  i, 
try'  if  we  continue  our  sound  financial  system  a j 
the  American  protective  tarifi';  and  there  is  no  rcas  , 
wliy  we  sliould  not  be  even  more  prosperous  th 
ever  Ijefore.  The  man  ^vho  carries  aslies  from  c 
back  yards  makes  more  money  than  the  journc 
man  carpenter  did  before  the  war,  and  gets  fo 
and  clothing  cheaper,  too.  The  Kesumption 
increased  the  circulation  8154,750,435  the  very  fi 
year,  and  it  has  been  going  on  ever  since.  And  t 
farmer  gets  a wliole  dollar  for  his  dollar’s  worth 
produce  now  ; and  if  he  has  a mortgage  on  1 
farm  tliero  is  no  reason  why  he  shouldn’t  pay 
with  ills  produce  protected  by'  the  tariff  and  mai 
of  his  most  necessary  supplies  free.  If  he  holds 
Government  bond,  as  a great  many  of  our  midcl 
class  do,  notwithstanding  the  story  that  the  Pop 
lists  tell,  he  can  receive  his  gold  interest,  whi< 
will  help,  althougli  interest  in  gold  now  is  not . 
much  to  him  as  it  was  in  the  past,owing  to  the  ef 
cient  legislation  of  the  last  thirty  years,  which  pu 
gold  on  a level  with  other  money.  And  anoth- 
thing  he  can  have  which  is  better  than  gold.  P 
can  have  the  proud  consciousness  that  he  lives  in 
country  whose  credit  belts  the  globe,  and  though 
failure  of  crops  now  and  then  may  embarrass  bin 
he  knows  that  he  can  retrieve  his  fortunes  when  tl 


S'.-5 

Leap  alien  labof  aei'oss  the  Ijorcler  cannot  nndei*- 
!d  him. 

We  can  take  care  of  tlie  men,  too,  who  risked  their 
^es  to  save  the  country,  even  if  the  bond  -holder 
aits,  with  his  interest  cut  down  till  his  bonds  are 
r less  valuable  than  of  yore.  We  can  educate 
ie  people  also ; and  build  the  coast  defences  that 
Lve  been  so  lately  needed  on  the  frosty  shores  of 
e Behring  Sea.  We  can  im])rove  the  country  in 
,ort,  at  all  points,  mentally,  morally,  physically 
id  geographically  ; for  tlie  debt  is  in  a condition 
! be  met  at  maturity,  and  our  tarifi’  duties,  if  left 
hue,  w'ill  furnish  the  means  even  while  it  protects 
ir  industries. 


CHAPTER  IX. 


P 

d 


THE  POISONED  TUNIC — INFLATION  OF  THE  C>  ' 

s 

EENCY. 

Like  a dog  baying  at  the  moon,  it  is  so  easy  to  b 
on  one’s  liannches  and  howl  about  legislation  t i 
one  knows  nothing  about.  The  greenbacker  gru 
bled  when  nobody  had  any  gold  but  the  boi 
holders,  and  he  grumbled  when  it  was  so  arraiif  i 
that  everybody  might  take  his  choice  of  gold, ; i 
ver,  nickel,  copper,  or  paper.  It  is  hard  for  > 
outsider  to  see  where  the  conspiracies  came  in  i ■ 
dor  the  foregoing  acts,  but  according  to  the  lexic 
of  greenback  etliics  it  seems  to  have  become  a C( 
spiracy  to  be  honest,  or  they  never  would  conn: 
at  a semi-repudiation  of  the  debt  we  owe  to  tin 
who  succored  us  in  the  hour  of  our  greatest  nei 
And  taking  the  little  book  previously  referred 
as  an  example,  I should  think  they  regard  it 
something  of  a conspiracy  to  tell  the  truth,  fo 
would  blush  to  tell  such  a whopper  as  that  coi 
prised  in  its  story.  And  then  to  cap  the  climax 
impiety  by  dedicating  it  to  a poor  man  who  is  de 
and  cannot  remonstrate. 

But,  it  is  pretty  evident  that  the  author  did  n 
dig  her  facts  (?)  out  of  the  tomes  and  annals 
statistics  for  herself,  as  I did,  and  so  we  will 
charitable  and  believe  that  some  bold,  bad  m: 
misled  her  as  to  the  data  on  which  her  clever  litt 
book  was  constructed.  Indeed  she  confesses  . 
much  in  the  preface  to  her  twelfth  edition,  whe 
she  declares  that  for  years  she  sat  a disciple  at  tl 
^eet  of  Colonel  B.  S.  Heath,  whoever  he  is;  and 
would  advise  her,  the  next  time  she  occupies  a lit 
S4 


i^r, 

;>osition  to  anyone  for  sucli  a very  long  time,  to  see 
;hat  her  teacher  performs  a certain  ablutionary 

orocess  known  to  the  Dunkards ; as  the  lack  of 
(.I  ‘ 

ibis  precaution  may  be  the  cause  of  that  strong 
)clor  of  falsehood.  For  I accepted  the  lady’s  invi- 
to iation  to  search  the  official  records,  and  every  lig- 
itlire  and  fact  contained  in  this  book  is  copied  from 
Til  them  verbatim  et  liberatim. 

<iii  I have  made  no  attempt  to  reply  to  any  of  the 
injpioted  utterances,  because  in  this  great  world,  full 
i,s  rot  only  of  various  minds,  but  of  changing  minds 
ir  [ilso,  he  would  take  a big  contract  who  attempted 
11  ;o  account  for  any  man’s  opinions,  past,  present, 
io  n-  future.  For  instance,  in  tlie  discussion  of  the 
CO  -Cgal  tender  there  were  a variety  of  opinions,  and 
ni  Sven  the  linanciez’s  of  the  country  were  divided  in 
liipizinion,  and,  according  to  Mr.  Fessenden,  you 
« could  not  count  on  their  remaining  of  the  same 
d mind  even  for  a day,  citing  as  an  instance  that  “ he 
[ Was  advised  very  strongly  one  day  by  a leading 
u financial  man,  to  oppose  the  legal-tender  clause, 
jifind  that  on  the  same  day  he  received  a note  from 
s ;i  friend  of  this  man’s  telling  him  that  he  couldn’t 
f ^et  along  without  it.” 

Fessenden  showed  the  note  to  the  man  who  had 
list  been  declaiming  against  the  measure  ; and  he, 
sxpressing  surprise,  went  home,  and  the  next  day 
celegraphed  that  he  had  changed  his  mind  and  now 
diought  the  act  necessary.  But  the  same  day  the 
friend  whose  note  had  been  shown  to  him,  wrote  a 
second  note  saying  that  he  had  changed  his  mind. 
A.nd  they  were  two  of  the  most  eminent  financial 
men  in  the  country. 

A circumstance  like  this  should  teach  one  to  be 
slow  in  accusing  men  who  happen  to  think  differ- 


ently  from  himself,  on  finance  at  least,  of  disho 
esty.  1 

But  this  legal-tender  note,  of  which  the  (Tree'  I 
hack  party  were  so  fond,  seemed  to  meet  a very  iv  ' 
divided  disapproval  except  as  a war  measure,  ev( 
from  those  who  championed  its  cause,  and  Seer 
tary  Ciiase  showed  how  it  was  regarded  by  the  ai  ^ 
ministration.  Said  he : 

I feel  a great  aversion  to  making  anything  but  coin  a leg  ' 
tender  in  payment  of  debts.  It  lias  been  my  anxious  wish  ( 
avoid  the  necessity  of  such  legislation.  It  is,  however,  ] 
present  impossible,  in  consequence  of  the  large  expenditnr  , 
entailed  by  the  war  and  the  suspension  of  the  hanks,  to  pr 
cure  suflicient  coin  for  disbursements,  and  it  has,  therefor 
become  indispensably  necessary  that  we  should  resort  to  tl 
issue  of  United  States  notes. 

The  amount  was  restricted,  too ; the  utmost  lim 
to  be  issued,  $1.50,000,000;  $.50,000,000  to  be  in  lieu  ( 
the  “demand  notes,”  and  the  amount  of  the  tw 
kinds  of  notes  together  was  at  no  time  to  be  ove 
$150,000,000. 

Why  all  this  care  lest  it  increase  too  fast,  as  mone; 
is  a good  thing,  if  this  was  good  money?  I wil 
tell  you. 

• The  best  friends  of  the  country  regarded  tha 
limit  as  the  danger  mark,  beyond  which  it  wouli 
not  be  well  to  pass,  for  there  is  always  flnancia 
disaster  in  inflated  values. 

This  is  the  poisoned  tunic  which  the  Greenbacl 
party  has  attempted  to  place  on  theshoulders  ofou 
hero;  but  this  modern  Hercules  is  far  wiser  thai 
his  illustrious  namesake,  and  he  firmly  refuses  t< 
wear  it. 

Take  it  all  in  all,  I like  this  little  book  passing 
well,  for  it  will  set  people  to  thinking,  and  it  wil 
do  more,  it  will  compel  them  to  overhaul  the  rec- 


87 


orcls,  and  that  will  result  in  the  vindication  of  the 
Republican  party  of  every  time.  The  party  of  ad- 
ivancement  and  good  morals;  of  the  tariff  and 
good  homes ; of  finance  and  good  money. 

Now  for  a recapitulation  in  a kind  of  “ in  short” 
istyle. 

The  act  of  Feb.  25, 1862,  made  the  United  States 
notes  a legal  tender  for  all  debts,  with  the  wise  ex- 
ception of  duties  on  imports  and  interest  on  the 
United  States  bonds.  Without  the  latter  exception 
we  could  not  have  borrowed  money  enough  in  Eu- 
|i-ope  for  a skirmish  with  a squad  of  mosquitoes ; 
and  with  the  former  exception  we  made  the  fore- 
igner pay  for  his  own  gold.  For  the  coin,  paid  on 
the  imports,  was  set  aside  by  section  3 of  tlie  act  as 
ja  special  fund  to  pay  this  interest  and  also  1 per- 
centum  of  the  entire  debt  of  the  United  States  to  be 
imade  within  each  fiscal  year.  The  remainder  to  be 
paid  into  the  Treasury. 

! By  the  National  banking  act  the  cumbersome 
bonds  were  utilized  for  circulation.  In  themselves 
they  were  not  available,  as  I have  shown,  for  they 
were  not  only  large  in  denomination  but  most  of 
them  were  about  a quarter  of  a yard  square.  The 
banking  notes  merely  represented  them  and  were 
secured  by  them,  thus  making  a good  exchange 
from  the  State  bank  notes  that  were  little  better 
than  flat  money. 

The  act  of  April  12, 1866,  did  not  contract  the  cur- 
rency ; to  the  contrary,  it  increased  the  circulation, 
and  really  rescued  the  country  from  the  many  dis- 
asters that  resulted  from  the  sudden  influx  of  our 
returned  soldiers,  and  an  increased  immigration, 
jinto  our  business  channels — when,  with  so  many 
starting  new  t entures,  some  had  inevitably  to  fail. — 


followed  liy  the  failure  of  Jay  Cooke  ct  Co.  (tli  ] 
very  men  for  whose  henefit  all  this  iniquity  wa  ^ 
being  accomplished,  according  to  these  Populists; 
who  failed,  however,  because  of  other  matters  en  4 
tirely.  ^ 

The  Credit  Strengthening  Act  was  an  act  of  simph  ^ 
justice,  paying  the  man  who  risked  his  money  01 
the  perils  of  war,  in  the  kind  of  money  that  prece  ^ 
dent  had  given  him  a right  to  expect ; we  thus  onlj 
made  a virtue  of  necessitjq  however,  for  he  avouIc  * 
never  have  loaned  us  the  money  to  be  paid  in  ai 
uncertain  currency,  in  such  uncertain  times. 

The  bonds  were  not  taxed,  because  it  was  uncon- 
stitutional to  do  so,  and  useless,  too. 

The  Refunding  Act  saved  to  the  country  millions 
in  interest  on  debts  we  were  not  able  to  pay  with- 
out an  enormous  issue  of  fiat  money,  which  would 
have  been  repudiation,  and,  therefore,  bad  faith 
toward  creditors.  It  also  would  have  been  unwise 
in  the  debtor  who  may  want  to  borrow  again,  and 
in  the  near  future,  too,  unless  we  speedily  attend 
to  our  coast  defenses. 

Tlie  Coinage  Act  did  not  demonetize  silver,  for  it 
w'as  not  a circulating  medium,  and  besides  was 
already  practically  demonetized,  because  the  silver 
dollar  was  worth  more  tlian  a gold  dollar.  The 
silver  dollar  had  never  cut  much  of  a figure  in  our 
business  transactions,  and  the  trade  dollar  was  not 
meant  for  circulation  here,  but  was  issued  in  the 
hope  of  furthering  American  interests  in  China 
and  Japan  by  taking  the  place  of  the  Mexican  dol- 
lar. When  it  failed  in  that,  and  certain  of  our  citi- 
zens took  advantage  of  its  coinage,  which  was 
almost  without  expense,  and  by  misrepresenta- 
tions unlawfully  produced  it  for  domestic  use,  the 
law  was  repealed. 


.^9 


[k 

Resumption,  approved  Januarj'  14, 1875,  and  con- 
'^uunmated  January  1,  1879,  brought  our  finances 
jack  to  the  smooth,  even  waters  of  a specie  basis, 
” :hrough  breakers  that  seemed  to  threaten  wreck 
. xnd  disaster,  so  that  even  those  who  Anally  ac- 
'jomplished  it  trembled  for  the  result.  But  by  the 
''plan  of  gradual  operations,  time  was  given  to  all 
, to  reef  their  sails  till  the  dangerous  channel  was 
| . passed,  and  our  ship  of  state  proudly  unfurled  her 
‘sails,  out  upon  the  ocean  of  a most  unexampled 
"prosperity,  an  unimpeachable  credit,  and  above  all 
a clear  escutcheon. 

' : The  Republican  party  that  came  into  power  on 
the  eve  of  the  rebellion,  burdened  by  a debt  bear- 
ing large  interest,  left  by  its  predecessors  with  an 
empty  treasury,  and  yet  saved  this  country  from 
the  mad  treason  of  a part  of  our  own  inconsiderate 
citizens,  and  brought  them  back,  with  fatted  calf 
accompaniment,  has  given  them  a system  of  Anance 
iunsurpassed  in  the  whole  civilized  world. 

I I have  tried  my  best  to  treat  this  matter  honestly 
lif  not  altogether  seriously ; and  indeed  some  of  the 
statements  made  by  the  Populists  are  so  ridicu- 
lously untrue  that  but  for  the  eA'ect  they  might 
have  on  those  not  very  well  informed  on  the  Anan- 
cial  history  of  the  country — the  very  class  which 
was  meant  to  be  influenced,  by  the  way — the  whole 
thing  would  not  have  been  worth  a moment’s  seri- 
ous thought.  It  is  on  account  of  this  and  not  for 
any  gravity  that  resides  in  the  absurd  charges  in 
themselves  that  it  becomes  necessary  for  the  great 
Republican  party  to  take  even  the  slightest  notice 
I of  it.  A small  cur,  when  he  is  vicious,  can  bite  ; 
and  there  is  just  as  much  danger  of  hydrophobia, 
too,  as  if  he  were  a mastitf  of  royal  breed. 


90 


I undertook  the  work  of  refuting  these  charges 
in  the  first  place  because  I believed  the  publi 
records  would  furnish  me  the  material  to  do  so 
for  like  the  majority  of  unofflcial  people,  I kne\ 
too  little  about  finance  to  more  than  believe, 
have  not  Vieen  disappointed,  and  if  those  who  d‘ 
me  the  honor  of  reading  my  little  book  find  thei 
respect  for  the  men  who  accomplished  the  grea 
work  of  reconstruction  under  so  many  difficulties- 
increased  by  my  simple  recital  of  facts,  in  the  sanu 
ratio  as  mine  has  been,  into  examining  into  tin 
records  of  their  work,  the  grand  old  party  will  neec 
no  monument  of  marble,  for  it  will  have  a monu 
nient  far  more  enduring  in  the  hearts  of  the  people 


CHAPTER  X. 


, AN  APPENDIX  BUT  NOT  A SUPPLEMENT. 

ili 

t!  With  the  completion  of  the  foregoing  cliapters,  I 
a;  thought  to  write  “ finis  ” after  my  work,  bnt  a new 
s.ract,  under  a somewhat  high-flown  title  has  come 
under  my  notice,  which  affords  me  an  excuse  to 
I’ldd  a brief  resume  of  the  methods  of  the  Republi- 
'i  ;an  party  as  compared  with  those  of  the  only  other 
I party  that  has  ever  had  a trial,  with  a bird’s-eye 
a k^iew  of  the  present  results,  and  the  wild  theories 
3f  some  who  have  not  had  a trial. 

This  new  work  seeks  to  erect  a man  of  straw  un- 
;ler  the  guise  of  what  they  call  “ Imperialism,”  to 
frighten  gullible  people,  and  because  the  industri- 
ms  and  enterprising  of  our  community  are  saving 
money  and  the  country  itself  is  growing  rich,  as  it 
should  do  after  more  than  a hundred  years,  the 
writer  points  a prophetic  digit  at  the  history  of 
Egyyt,  Babylon,  Assyria,  Greece  and  Rome  as  a 
prototype  of  ours,  and  in  a sepulchral  w hisper  an- 
nounces that  the  lack  of  lucre  was  the  moving 
fiiuse  of  the  decline  and  fall  of  these  respective 
jountries.  “O  consistency,  thou  art  a jewel !”  If 
;hat  were  true  the  very  fact  that  our  people  are 
growing  rich  would  seem  our  best  safeguard. 

But,  alas  ! in  t)iis,  as  in  everything  else,  the  facts, 
[ike  the  Greenback  idea  ol  money,  seem  rather  in- 
flated, to  say  the  least ; for  according  to  history 
A.ssyria  gobbled  Babylon  by  brute  force,  because 
ohe  was  a land  of  soldiers,  while  her  neighbor,  the 
home  of  the  arts  and  literature,  was  not  learned  in 
war.  Then  Assyria  and  Egypt  quarreled,  one  and 
! 91 


I 


tlien  the  otlier,  up  uiul  down,  like  ii  see-saw,  till 
Greece  stciujcd  in  and  scooped  them  both. 

As  to  the  decline  of  Greece  and  Rome,  Montagu 
says  that  the  real  cause  was  tlieir  change  from  re- 
ligion to  atheism. 

The  religion  of  the  Romans  taught  them  that 
their  country  was  a place  dear  to  their  gods  and 
destined  by  them  to  give  law  to  the  rest  of  the 
universe.  This  made  their  courage  in  her  de- 
fense invulnerable,  and  every  Roman  soldier,  be- 
ing a citizen  possessed  of  property,  was  equally 
interested  in  the  safety  of  the  republic  for  per.sonal 
reasons,  just  as  every  citizen  of  America  is  to-day, 
and  the  richer  they  grow  the  more  interested  they 
will  become. 

But  Epicurus  arose  and,  clothed  in  the  shining 
garb  of  ])hilosopliy,  spread  his  atheistical  doctrines 
broadcast  tiirough  the  land,  and  these  Romans  be- 
gan to  ask  themselves  what  was  the  use  of  virtue’s 
sacrifices  for  the  .sake  of  enlarging  their  country  if 
death  is  but  an  eternal  sleeii  and  man  has  no  ac- 
count to  render  for  his  conduct  here?  Why  not 
have  a good  time  while  existence  belonged  to 
them?  So  the  revel  began,  and  debauchery  and 
crime  soon  routed  the  army  that  had  hitlierto  l)een 
invincible,  the  Roman  Senate  the  worst  of  all, 
merely  because  their  opportunities  were  greatest. 

Now  if  these  Populists  really  want  to  prevent  all 
these  disasters  being  repeated  in  our  country,  and 
at  the  same  time  fill  a long  felt  want,  thej-’d  better 
let  finance,  upon  which  they  do  not  seem  very  well 
posted,  alone  ; and  scatter  a few  leafiets  on  religion 
whore  their  ignorance  is  possibly  denser  still, 
among  their  anarchist  adherents. 

But  I would  not  begin  this  work  by  talking  about 


93 


le  Almighty  being  “ staggered  and  perplexed  ” by 
ae  doings  of  a handful  of  His  own  creatures  ; it 
® macks  too  much  of  irreverence. 

^ The  view  taken  in  this  new  screed  of  the  work  of 
nr  inventors  does  not  seem  wai'ranted  by  the  facts 
'i  s recorded  at  the  Patent  Office.  They  say  labor 
as  not  been  benefitted  by  the  advancement  in  nie- 
*^anic  arts,  and  yet  our  farmers  to-day  may  turn 
■:  p the  soil  with  a plow  run  by  steam  instead  of  the 
ifooked  stick  of  the  Egyptians  ; to  say  nothing  of 
S'! he  thousand  and  one  useful  articles  that  make  the 
llibor  of  her  own  sex  light ; no  more  roasting  over 
coal  sto^’e  in  the  dog  days  ; no  more  stitching  by 
land  till  midnight  to  do  the  work  of  an  hour;  with 
atent  brooms  that  raise  no  dust ; patent  sieves 
liat  scatter  no  flour  ; patent  clothes  wringers  ; egg 
leaters,  and  dozens  of  other  things  that  save  the 
nuscle  added. 

It  is  true,  the  men  whose  study  and  labor  pro- 
uced  these  tilings  may  have  grown  rich  througli 
heir  sale,  but  the  veriest  churl  on  earth  would 
Sardly  begrudge  them  the  reward  they  so  richly 
lerit,  and  even  during  the  limited  period  they  are 
pie  owners  of  their  own  creations  others  are  bene- 
tted  far  more  than  they  are.  It  would  indeed  be 
sad  day  for  the  brain  workers  of  this  country 
bould  this  class  of  genteel  pirates  .succeed  in  ap- 
ropi'iating  all  of  tlie  benefit  of  their  labor. 

As  it  is  the  comi^issioner  ])uJolishes  a list  of 
atents  as  long  as  the  moral  law,  that  have,  years 
go,  expired  and  left  their  free  use  as  a legacy  to 
lie  country. 

A comparative  statement  of  the  patents  issued 
jince  July  28,  1836,  when  the  present  series  of  nuni- 
}ters  of  letters  patent  commenced,  will  give  some 


idea  of  our  impi’ovenient  in  that  direction.  In  tin 
year  1837,  tliere  were  issued  43(5  patents  and  re 
issues,  yielding  a revenue  of  629,289.08,  while  thi 
expenditures  were  6.33,506.98.  In  1891,  23,244  wen 
issued,  yielding  6l!271,2So.78,  with  expenditures  o 
61,139,713..35,  leaving  a surplus  to  the  credit  of  thi 
ollice ; and  there  has  Ijeen  hut  eight  j'ears  in  al 
this  half  century  when  there  was  not  a surijlus 
making  this  department  more  than  self-support 
ing,  so  that  the  inventors  of  our  country  are  no 
robliing  anybody  at  all  events. 

It  is  true  that  with  a labor-saving  machine  one 
man  may  do  the  work  of  many  men,  but  this  does 
not  argue  tliat  the  balance  of  the  men  must  remair 
idle,  lor  they  may  be  employed  making  the  ma- 
chine itself;  first  gathering  its  material  i>arts,  the 
iron,  bi-ass  and  copper  ores  from  the  bowels  of  the 
eartli,  and  latterly  the  marvelous  aluminum;  the 
timber  from  the  forest ; the  glass  from  the  sands  o; 
the  ocean  ; and  by  the  time  that  machine  is  con- 
structed, hundreds  of  men  have  earned  their  bread 
and  then  tliat  wonderful  magician,  when  created, 
will  so  n'iultiply  the  articles  it  manufactures  that 
this  in  itself  will  increase  labor,  and  besides  these 
men  may  buy  much  more  for  their  money  than  ir 
the  day  wlien  thej^  paid  two  prices  for  their  rude 
hand-made  articles. 

For  one,  I have  no  patience  with  the  set  of  har- 
pies that  have  sprung  up  in  tiie  country,  who  sit  in 
idleness  and  look  with  envious,  covetous  eyes  upon 
the  proceeds  of  other  people’s  labor. 

In  tliis  connection  I will  give  the  distinguished 
opinion  of  one  who  has  been  outrageously  mis- 
quoted in  this  later  etlbrt,  and  correct  yet  another 
discrepancy. 


05 


, It  reads  thus:  “Seeretavy  ‘ MeCollongh,’ ” — the 
,^'ritcr  proving  by  the  spelling  of  the  name  that  the 
eport  was  never  seen  by  her — “in  his  report  for 
,j)eceinbor,  1865,  says:  “We  liave  now  about  §2,- 
60,000,000,  nearly  all  in  circulation  among  the  peo- 
ile,”  and  then  the  writer  proceeds  to  pnt  a glowing 
jiicture  on  the  canvas  of  her  own  imagination  with 
he  Secretary’s  brushes.- 

I Now  the  fact  is,  this  same  statesman.  Secretary 
. dcCnlloch,  was  bitterly  opiiosed  to  a very  over- 
lowing  currency,  and  in  his  report  to  Congress  of 
^0.")  he  expatiated  at  some  length  ui>on  the  financial 
distresses  of  former  periods,  showing  that  tliey 
I'ere,  to  use  his  own  words,  “ the  direct  result  of 
nhealthy  extension  of  the  various  forms  of  credit,” 
ur  paper  among  the  rest.  Thus,  in  speaking  of 
re  great  expansion  of  1835  and  1836,  ending  with 
tie  terrilile  financial  collapse  of  1837,  from  the 
fifects  of  which  we  did  not  rally  for  years,  he 
ointsa  warning  finger  at  its  repetition,  because  as 
e says : 

It  then  seemed  to  be  more  reputable  to  borrow  money 
lan  to  earn  it,  and  pleasanter,  and  apparently  more  .profitable 
> speculate  than  to  work  ; and  so  the  people  ran  headlong 
ito  debt,  labor  decreased,  production  fell  oil,  and  ruin  fol- 
iwed. 

He  then  went  on  to  speak  in  this  wise: 

The  present  inflation,  foliowing  the  suspension  of  1801,  is 
le  result  of  heavy  expenditures  by  the  Government  in  the 
■osccution  of  the  war,  and  the  introduction  - of  a new  meas- 
•e  of  value  in  the  form  of  United  States  and  Treasury  notes 
; lawful  money.  The  country  as  a whole,  notwithstanding 
ic  ravages  of  the  war  and  the  draught  that  has  been  made 
ion  labor,  is,  by  its  greatly  developed  resources  (meaning 
le  protective  tariff),  far  in  advance  in  real  wealth  of  what 
was  in  IS.’IT,  when  the  last  severe  financial  crisis  occurred, 
le  people  are  now  comparatively  free  from  debt ; the  banks. 


90 


with  their  secured  circulation  and, .large  investments  in  Gov 
eminent  securities,  aithough  not  in  an  easy  condition,  an< 
doubtless  too  much  extended,  are.  it  is  believed,  generally 
solvent,  but  the  same  causes  are  at  work  that  produced  th-i 
evils  referred  to.  There  is  an  immense  volume  of  pape 
money  in  circulation— under  the  inlluence  of  which  priceji 
already  enormously  high,  are  steadily  advancing,  and  speen 
lation  is  increasing— which  must  be  contracted,  if  similar  dis 
asters  would  be  avoided. 

Further  on  in  his  report  Mr.  McCulloch  says : 

The  expansion  has  now  reached  such  a point  as  to  he  abso 
lutcly  oppressive  to  a large  portion  of  the  people,  while  ai 
the  same  time  it  is  diminishing  labor,  and  is  becoming  sub 
versive  of  good  morals. 

He  then  goes  on  to  illustrate,  and  finally  -winds 
up  his  argument  against  a large  amount  of  cur- 
rency thus: 

There  is  no  fact  more  manifest  than  that  the  plethora  o1 
paper  money  is  not  only  undermining  the  morals  of  the  peo- 
ple hy  encouraging  waste  and  extravagance,  but  is  striking! 
at  the  root  of  our  material  prosperity  by  diminishing  labor. 
The  evil  is  not,  at  present,  beyond  the  control  of  legislation, 
but  it  is  daily  increasing,  and  if  not  speedily  checked  will  al 
no  distant  day  culminate  in  widespread  disaster.  The  remedy, 
and  the  only  remedj'  within  the  control  of  Congress  is,  in  the 
opinion  of  the  Secretary,  to  be  found  in  the  reduction  of  the 
currency. 

There  you  have  it.  Secretary  !McCullocli  dif- 
fered someAvhat  from  his  distinguished  country- 
woman, but.  then  you  kno-sv  great  minds  will 
differ,  and  the  worst  cut  of  all  is  that  this  “ im- 
mense volume  of  paper  money,”  all  told,  instead 
of  being  almost  82,000,000,000,  as  the  book  states, 
was  but  8704,218,038.20.  From  page  9 of  the  Secre- 
tary’s report  to  Congress,  October  .31,  1SC5,  I tran- 
scribe the  following  statements  ol'  the  amounts 
tlien  in  circulation : 1 


97 


United  States  notes  and  fractional 


currency ^54,218,038.20 

National  bank  notes 185,000,000.00 

State  bank  notes 65,000,000.00 


Total S704,218,938.20 


Added  to  this,  he  goes  on : 

It  would  probably  Ije  safe  to  say  that  of  the  compound  in- 
terest notes  there  are  about  §30,000,000  in  circulation. 

But  this  latter  statement  was  proven  to  be  a mis- 
take ; for  when  those  notes  were  finally  redeemed, 
their  condition  of  well  preserved  cleanliness  proved 
that  not  even  810,000,000  had  ever  been  utilized  as  a 
circulating  medium. 

lean  not  understand  such  a willful  misrepresent- 
lation  of  facts  ; though  I do  understand  how  people 
may  be  misled  by  the  Treasury  reports  themselves, 
when  they  do  not  Know  the  method  of  tabulating 
them. 

Thus,  when  mutilated  notes  are  called  in  for  re- 
demption, tliey  merely  appear  as  a part  of  the  re- 
ceipts, and  when  they  are  reissued  they  appear  as 
a new  issue,  so  that  an  issue  of  any  kind  of  money 
all  summed  up  might  look  pretty  large  to  those 
who  do  not  know  that  a very  large  part  of  those 
put  out  are  balanced  by  the  old  notes  in  place  of 
which  they  are  issued. 

This  probably  accounts  for  the  Populistic  state- 
ment of  the  public  debt,  by  which  they  make  out 
a debt  of  nearly  thirteen  billions,  when  in  point  of 
fact  the  principal  and  the  interest  for  over  thirty 
7ears  would  not  together  amount  to  five  billions 
up  to  the  present  time ; and  instead  of  being  in 
iebt  worse  than  ever,  as  is  flippantly  quoted  from 
somebody  who  knew  no  more  about  it  than  the 
writer  in  question,  the  entire  public  debt  outstand- 


98 


ing  on  May  31  last,  was  ?t169,a59,2.53.6I,  and  of  this 
sum  the  interest  has  ceased  "ion  83,167,345.26,  and  of 
the  remainder,  8381,162,628..35  is  jnade  np  of  her 
highly  honored  demand  notes,  her  precious  legal 
tender  notes,  fractional  currenefy,  National  bank 
notes,  etc.,  on  which  there  never  was  any  interest, 
so  that,  instead  of  being  in  debt  worse  than  ever, 
we  owe  but  little  over  •8500,000,000  of  interest-bear- 
ing debt,  upon  which  we  are  paying  a greatly  re- 
duced interest,  and  none  of  this  interest  is  paid  on 
the  money  that  was  destroyed. 

No  interest  has  ever  been  paid  upon  the  money 
that  was  destroyed,  no  interest  will  ever  be  paid  on 
the  money  that  was  destroyed,  and  no  money  was 
ever  destroyed  anyhow,  for,  in  the  first  place,  the 
greenbacks  bore  no  interest,  and  in  the  second  they 
were  not  destroyed,  because  they  are  still  out- 
standing. 

This  debt  was  contracted— notwithstanding  the 
Third  Party  to  the  contrary — not  only  “ to  form  a 
more  perfect  union,  establish  justice,  and  insure 
domestic  tranquility,”  but  to  save  the  very  life  of 
the  Republic ; and  it  “ provided  for  the  common 
defense,  and  secured  the  blessings  of  liberty^to 
ourselves  and  our  posterity,”  by  VTesting  our 
homes  from  the  mad  hand  of  the  spoiler  who  would 
have  destroyed  the  Union.  Thriee  welcome  such 
a debt,  and  thrice  welcome  my  share  of  the  bur- 
den while  it  is  being  paid! 

They  also  forget  to  balance  their  accounts  in 
summing  up  the  disbursements  of  the  Government 
in  paying  off  the  debt,  and  I think  they  will  them- 
selves admit  that  it  is  hardly  fair  to  count  the 
money  paid  and  leave  out  the  money  saved. 

In  piling  up  figures  to  produce  their  .813,000,000,000, 


99 


the  premiums  paid  by  the  Government  cut  quite  a 
figure,  being  counted,  first,  as  part  of  the  principal 
and  then  again  separately.  Ifow  why  does  the 
Government  ever  pay  a premium?  The  Populist 
brother  objects  to  it,  and  yet  millions  are  saved 
to  our  public  fund  by  it.  For  instance  : 

There  is  an  unnecessary  surplus  in  the  Treasury. 
A part  of  the  debt  might  as  well  be  paid  with  it. 
No  bonds  are  matured  ; but  a premium  will  induce 
the  holder  to  yield.  The  Secretary  does  a little 
arithmetic  and  the  result  is  an  offer  of  an  amount 
that  will  leave  a handsome  margin,  out  of  what  the 
cost  with  accrued  interest  would  be  at  maturity. 

I The  premium  is  paid  and  millions  saved  by  the 
seeming  extravagance. 

Take,  for  example,  the  changes  in  the  interest- 
bearing  debt  since  March  1,  1889,  which,  by  just 
such  means,  have  resulted  in  a saving  of  over  $50,- 
300,000,  as  follows:  Four  per  cents,  amounting  to 
^121,615,950,  were  bought  at  a cost  of  $152,958,818.8.3. 
Their  cost  at  maturity  would  have  been  $206,555,- 
J88.50,  a saving  of  $53,965,469.67.  Four  and  a half 
per  cents  amounting  to  $137,477,700  cost  $143,.388,- 
0 12.37.  They  would  have  commanded  at  matm-ity 
It  !145,114,136.21,  a saving  of  $1,756,023.84.  Total  sav- 
ng,  $55,352,493.51.  And  in  addition  to  this  the 
fk  mount  of  $25,.364,500  of  4i  per  cent,  bonds  were 
It"  [ontinued  at  2 per  cent.,  saving  to  the  Government 
in  annual  interest  of  $634,112.50  more. 

II  Where  economy  is  needed  a Republican  admin- 
' ptration  can  economize.  But  it  is  no  part  of  wis- 

om  to  save  at  the  spigot  what  must  eventually  be 
asted  at  the  bung-hole.  Neither  is  it  the  policy 
r the  Republican  party  to  ran  this  large  and  grow- 
i'  ig  country  on  a provincial  scale.  And  the  parsi- 


100 


mony  of  the  Democracy  looks  smaller  than  ever 
when  compared  with  the  generous  policy  that 
would  improve,  enlarge  and  better  the  country, 
while  at  the  same  time  the  appropriation  necessary 
to  do  so  lilts  the  cash  from  its  hiding  place  in  the 
Treasury  and  scatters  it  broadcast  among  the  work- 
ing people,  thus  keeping  it  in  circulation. 

There  has  been  much  said  about  the  “ billion  dol- 
lar Congress”  and  the  melting  away  of  the  large 
surplus  under  its  benign  influence,  and,  with  the 
report  of  the  Appropriations  Committee  before 
me,  I note  some  of  the  items.  To  begin  with,  the 
pensions  of  our  soldiers  had  been  kept  down  at 
the  lowest  ebb  by  the  Democrats  when  in  power  in 
the  House,  and  our  once  brawny  defenders  were 
growing  old  and  feeble.  The  pension  appropria- 
tion ol  the  preceding  Congress  had  been  but  8175,- 
017,400,  much  of  that  a deficiency  to  re-enforee  the 
even  smaller  sums  of  previous  years,  and  so,  the 
Republicans  of  the  Fifty-first  Congress,  many  ol 
them  ex-Union  soldiers  themselves,  gave  their  less 
fortunate  brothers  all  that  the  revenues  would 
afford,  and  appropriated  in  the  two  sessions  8388,- 
329,751.69. 

Our  mail  is  growing,  too,  and  the  appropriatioi 
that  sent  it  once  or  twice  a week  on  horseback  tc 
Baltimore  from  Washingtoxi  in  former  times  is  no' 
sufficient  for  our  splendid  mail  service  now,  whei 
every  village  can  have  its  daily  mail ; therefore 
this.”  billion-dollar  Congress”  appropriated  8150, 
133,921.60  for  our  mail.  But  this  is  a great  part  o 
it,  if  not  all,  supplied  by  our  postal  revenues.  : 

Further,  the  Republican  party  is  in  favor  of  help  r 
ingall  who  can  earn  their  daily  bread  honestly  ^ 
which  naturally  brings  the  farmer  to  the  front  'vsfitl 


101 


his  largely  growing  interests ; and,  as  the  Weather 
Bureau  also  had  been  transferred  from  the  War 
Department  to  the  tender  mercy  of  Uncle  Jerry 
Rusk,  the  sum  needed  was  almost  doubled,  and 
those  “ dreadful  Republicans  ” actually  “ wasted  ” 
$4,827,253.50  of  the  “ people’s  money  ” on  our  farm- 
ing industrj'.  These  are,  of  course,  only  a few  of 
the  many  items  that  swelled  the  amout  to  $988,417,- 
ias.34. 

Still,  there  was  money  left  of  the  hoard  that  had 
for  years  been  locked  in  the  Treasury  by  Demo- 
cratic economy  (?),  doing  nobody  any  good,  and  so 
|$2S9,000,000  of  the  debt  was  wiped  out. 

I The  Republican  party  has  no  excuse  to  offer  for 
(the  “ billion  dollar  Congress,  ” because,  in  the  first 
iplace,  every  cent  of  the  money  was  judiciously  ex- 
pended ; and  in  the  second  place  the  circulation 
per  capita  was  increased  almost  a dollar  a head  ; 
and  in  the  third  place,  the  so-called  economists  ot 
the  next  Congress  appropriated  almost  §500,000,000 
in  their  first  session,  and  after  knifing  everybody 
in  sight  also,  and  crippling  our  service  so  that  even 
the  garbage  of  our  Capital  City  had  to  be  almost 
lalf  of  it  collected  on  credit. 

This  is  the  way  the  immense  surplus  of  1890  came 
ibout  by  the  way.  Controlling  the  appropriations 
or  years,  with  but  the  two  years’  interregnum  of  the 
?orty-seventh  Congress,  their  skin-flint  policy 
)iled  up  the  money  brought  to  our  revenues  by  the 
ax  which  these  free-traders  insisted  on  for  the  pro- 
ection  of  the  sugar  industry — an  infant  that  would 
pot  grow  with  all  their  coddling — and  improve- 

I rents  halted,  while  the  Democratic  politician  made  ■ 
olitical  capital  out  of  “ economy.” 

I For  the  Census  reports  show  that  a single  mort- 


102 


gage  may  be  counted  more  than  once,  because  it 
is  freq  uently  shown  on  the  separate  records  of  the 
places  of  residence  of  the  several  parties  to  it,  when 
they  live  in  different  townships. 

And  besides,  partial  payments  have  been  made 
in  many  cases  that  have  almost  cleared  the  mort- 
gage, of  which  there  is  no  record  because  it  is  not 
completed. 

I do  not  know  where  these  people  get  their  sta- 
tistics as  to  the  amount  of  land  owned  by  specu- 
lators, as  there  are  no  such  persons  known  on  the 
records  of  the  Land  Office,  where  no  tabulated  re- 
ports have  been  made  anyhow. 

The  idea  of  turning  our  farmers  into  tenants 
against  their  will  is  really  grotesque.  I presume 
the  business  of  the  farmer  fails  .some  time,  and  be- 
coming bankrupt  he  is  sold  out  just  like  other  peo- 
ple who  fail  in  business.  It  is  a sad  event  and 
everybody  must  sympathize  with  such  an  indi- 
vidual ; but  why  with  the  farmer  more  than  the 
mechanic,  merchant,  or  banker  ? 

As  for  “ caste  ” that  this  benevolent  lady  repre- 
sents as  growing  up  here  so  rapidly,  I would  like 
to  invite  her  to  our  Capital  City,  and  by  the  time 
she  is  hustled  off  the  sidewalk,  made  to  stand  up 
in  the  street  cars,  and  take  a back  seat  at  most  of 
our  public  gatherings,  while  her  cook,  chamber- 
maid, and  coachman  elbow  her  out  of  the  way,  she 
will  begin  to  think  that  caste  is  not  “ indigenous  to 
our  soil,”  at  any  rate. 

There  are  some  rich  men  in  our  Senate  and  the 
President’s  Cabinet.  That  is  one  truth  out  of  the 
many  misstatements.  But  how  a poor  man  can 
ever  afford,  to  accept  either  position  is  more  than  I 
can  see.  The  salary  of  a Senator  is  ^,000  per  an- 


103 


num,  and  that  of  a memher  of  the  Cabinet  is  $s>,000, 
and  the  running  expenses  of  each  office,  to  say 
nothing  of  the  family  expenses  of  a man  in  such  a 
position,  who  is  expected  to  yield  unlimited  hos- 
pitality to  the  dear  constituents,  amounts  to  more 
than  he  receives.  Some  of  the  Senators  who  have 
large  districts  are  compelled  to  hire  two  or  threes 
clerks,  whom  they  must  pay  out  of  their  own 
pockets,  to  attend  to  the  many  things  required  of 
them  outside  of  their  duties  at  the  Senate;  writing 
letters  to  and  running  errands  for  their  people,  etc. 

The  wage-earner  of  America  is  not,  as  a class,  op- 
pressed by  the  millionaire  or  anybody  else.  There 
are  individual  instances  of  that  kind,  I am  sorry 
to  say,  where  work  being  scarce,  employers  have 
the  advantage.  But  the  tables  are  often  turned 
when  the  conditions  are  reversed,  and  the  working 
people  know  how  to  take  advantage  of  it,  too. 
When  one  hundred  men  are  wanted  to  do  a job  of 
work,  and  there  are  only  ninety-nine  men  to  be 
had,  labor  is  at  a premium,  and  the  laborer  can 
dictate  his  own  terms,  and  he  generally  does  it* 
Wages  go  up,  privileges  are  numerous,  etc. 

But  when  there  are  100  men  who  want  work  and 
only  work  enough  for  ninety-nine  the  spirit  of  the 
dream  changes  and  wages  go  down.  It  is  simply 
the  law  of  supply  and  demand,  together  with  the 
jproneness  of  all  mankind  to  seize  every  persona  1 
jadvantage.  The  law  has  nothing  to  do  with  that’ 
land  with  the  best  intentions  our  law-makers  can* 
not  legislate  human  selfishness  out  of  existence 
So,  unless  our  socialistic  friends  undertake  to  reg- 
ulate the  Almighty  and  dictate  a new  enactment  in 
law  divine,  they  will  have  to  content  themselves 
Kvith  the  “ leaflets  ” mentioned  above. 


104 


So  Imperialism  in  America  tarns  oul  a myth, 
along  with  its  organ  the  Imperialist.  At  least  the 
Hon.  Levi  P.  Morton  says  he  never  heard  of  it,  and 
he  was  its  chief  patron  according  to  this  Populist 
historian.  If  any  such  publication  existed  it  was 
evidently  tlie  bubble  creation  of  some  of  the  num- 
erous cranks  that  have  become  so  blatant  in  this 
land  of  freedom,  where,  according  to  our  free  in- 
stitutions, the  much-needed  restrictions  can  not  be 
put  upon  them — more’s  the  pity — that  they  seem 
to  be  “indigenous  to  our  soil,”  at  least ; but  that 
bubble  burst  inside  of  a year,  as  the  lady  admits, 
which  proves  also  that  the  idea  was  not  very  popu- 
lar, even  in  Xew  York,  where  the  millionaire  busi- 
ness is  said  to  be  at  a premium. 

It  would  be,  indeed,  liard  for  any  political  party 
to  be  compelled  to  shoulder  the  responsibility  of  all 
the  cranks,  plotters,  and  malcontents — more  num- 
erous than  ever  since  this  third  party  has  been 
hatching — that  are  only  happy  ^\•hen  they  are  cry- 
ing somebody  down,  or  building  up'  some  new 
and  impossible  scheme. 

Now,  I am  aware  that  this  appended  chapter  is, 
to  a certain  extent,  but  another  repetition  of  the 
many  answers  that  I have  given  already  in  the 
body  of  this  work,  to  tlie  same  old  song  which 
they  are  continually  harping  oh  that  one  string  of 
how  “ we,  us  and  company  ” would  run  the  Gov- 
ernment if  we  could  onlu  "‘get  there-,"  questions 
that  I have  answei-ed  too  completely  to  entitle  this 
to  be  called  a “ suijplement,”  but  which  is  made 
necessary  by  the  fact  that  all  these  cunningly  built 
statements  are  so  devised  as  to  appeal  directly  to 
the  personal  interests  of  some,  who  know  too  little 


106 


about  our  public  affairs,  to  detect  the  false  bottom 
on  which  they  stand. 

Then  began  their  cry  of  too  much  surplus  while 
Republicans  were  in,  and  then  when  the  Republi- 
cans by  means  of  wise  and  equitable  appropria- 
tions gave  work  to  hundreds  of  wage-earners,  they 
changed  the  cry  to  “ deficiency,”  and  helped  spend 
the  money  themselves  by  a system  of  espionage  in 
the  shape  of  investigating  committees;  whicli 
course  reminds  me  of  the  case  of  a discontented 
husband  that  T once  knew. 

He  was  a niggardly  fellow,  with  no  regard  for 
the  refinements  of  life,  and  his  wife  was  a great 
trouble  to  him,  hecau.se  she  insisted  on  preserving 
at  least  the  decencies  in  their  mode  of  living ; so 
he  determined  to  get  rid  of  her,  and  secretly  con- 
sulted a lawyer  about  getting  a divorce  for  him. 

“Well,”  said  the  man  of  law,  “ what  charge  do 
you  make  against  your  wife?” 

“ She  spends  my  money,”  said  he,  “ so  that  I can 
lay  up  nothing  for  my  old  age.  Isn’t  that  enough?” 
“Hum!  let  me  see,”  said  the  lawyer.  “How 
.much  is  your  salary?” 
i “ Twelve  hundred  a year.” 

“ How  many  children  have  you?” 
j “Three.” 

“ That  makes  five  in  family,  with  S20  per  month 
feach,”  computed  the  lawyer.  “ My  dear  sir,  how 
do  you  expect  to  live  on  less  in  a city  like  this  ? 
And,  yet  you  are  paying  for  the  house  you  live  in 
5ut  of  it,  which  convinces  me  that  your  wife  must 
Jo  the  greater  part  of  her  own  work  into  the  bar- 
gain. Why,  sir,  I would  be  the  laughing  stock  of 
;he  community  to  bring  such  a case.  You  will  have 


106 


to  find  some  charge  more  tenable— infidelity  or 
something  of  that  kind.” 

“I  have  never  suspected  anything  of  the  kind,” 
tlie  man  admitted,  and  went  sorrowfully  away. 
But  from  that  hour  the  poor  woman  was  under  es- 
pionage, not  that  he  hoped  to  find  her  guilty,  for 
nobody  knew  the  purity  of  her  life  better  than  he, 
but  that  he  might  catch  her  in  some  indiscreet  act 
that  could  be  distorted  into  a charge.  And  this  is 
Democratic  economy. 

Now  let  us  take  a look  at  the  policy  of  the  last  ad- 
ministration, and  see  if  it  did  not  solve  the  problem 
of  howto  maintain  the  happy  medium  between  in- 
flation and  contraction. 

According  to  Secretary  Foster,  whose  word,  if  it 
needed  support,  is  amply  sustained  by  the  oflScial 
records,  the  income  of  1891  from  revenue,  etc.,  av- 
eraged under  the  workings  of  the  McKinley  law 
§^12,717,702.94  per  month ; government  expenses  av- 
eraged §30,481,175.44  per  month.  Thislefta  monthly 
balance  after  all  expenses  were  paid  of  .§2,2;16,.545.- 
16,  which  is  considered  a safe  balance,  one  that 
would  be  sufficient  for  most  unexpected  emergen- 
cies at  any  time,  and  yet  would  not  accumulate  a 
surplus  faster  than  the  debt  travels  toward  matu- 
rity, which,  of  course,  would  lay  an  unnecessary 
burden  on  the  people. 

Land  monopoly  is  another  of  the  nightmares 
that  prance  in  this  third  party  dream,  and  like  all 
the  rest,  it  is  a “ dark  horse,”  an  exceedingly 
“ dark  horse,”  and  that  style  of  beast  is  not  win- 
ning the  race  this  year.  The  alien  land-holders 
are  a special  aggravation,  it  seems.  Well,  prior  to 
1837,  under  our  graduation  acts  and  laws  regulat- 
ing private  sales  of  public  lands,  aliens  were  per- 


107 


mitted  to  acquire  such  lands.  It  is  possible,  there- 
fore, that  under  those  laws  aliens  may  have  ac- 
quired large  areas  of  land  in  this  country,  just  as 
our  people  accumulate  property  in  Europe  ; and  if 
a Populist  has  a farm  for  sale  and  finds  a pur- 
chaser iii  a representativeof  Johnny  Bull,  “or  any 
other  man,”  who  is  to  prevent  him  from  selling  to 
him,  I would  like  to  know?  As  for  the  United 
States  Government,  that  has  done  all  that  is  possi- 
ble in  the  premises  by  passing  a law  March  3, 1887, 
to  restrict  the  ownership  of  real  estate  in  the  Terri- 
tories to  American  citizens  ; if  the  several  States 
decide  differently  the  States  have  that  privilege, 
[according  to  the  Constitution. 

' But  many  of  our  alien  neighbors  came  here  when 
the  treaty  of  Guadalupe  Hidalgo  decided  the 
boundary  line  between  Mexico  and  the  United 
States;  or,  rathei",  we  went  to  them.  Many  acres  of 
the  land  which  was  tluis  allotted  to  the  United 
States  were  then  discovered  to  be  owned  and  oc- 
pupied  by  Mexicans.  “ Every  man’s  home  is  his 
castle”  in  law,  and  so  these  previously  acquired 
rights  the  treaty  also  protected  ; and  IMexicans  es- 
;ablished  in  this  territory  were  by  tlie  teyms  of  the 
;reaty  left  free  to  continue  there  or  remove  to  IMex- 
co,  retaining  their  property  or  selling  it  just  as 
hey  pleased,  retaining  the  rights  and  titles  of 
dexican  citizens,  or  becoming  citizens  of  the  United 
states  at  their  pleasure.  Many,  while  retaining 
heir  land,  remained  true  to  their  allegiance  to  their 
iative  land  ; and  thus  it  came  about  that  many 
cres  of  our  land  are  owned  by  Mexicans. 

By  the  way,  while  these  people  are  downing 
aonopoly.  I would  like  to  call  attention  to  the  fact 
aat  one  of  their  Senators  might  be  regulated  a 


108 


little  on  that  subject,  for  lie  seems  in  danger  of 
monopolizing  the  Senate,  having  three  members  of 
his  immediate  family  in  its  employ:  and  that  these 
are  the  whole  of  his  family  is  probably  the  reason 
he  has  no  more  than  three  provided  for. 

Another  dreadful  crime  is  also  cited  in  this  con- 
nection, viz.:  the  grant  of  lands  to  railroads.  Now, 
as  the  Government  retains  every  alternate  section, 
which  is  doubled  in  value  by  the  building  of  the 
road  ; and  as  it  also  keeps  back  all  the  mineral 
lands, while  at  the  same  time  it  thus  secures  means 
of  transportation  for  the  grain  of  the  farmer  and 
the  supplies  of  the  whole  country,  I think  this 
charge  also  fails  to  make  connection. 

Farms  are  not  decreasing  in  the  United  States 
either.  It  may  be  true  that  the  -American  farmer 
owned  50  per  cent,  of  all  the  farm  property  in  I860 
and  only  25  per  cent,  in  1880,  and  20  per  cent,  in 
1800,  as  some  have  computed.  But  this  property, 
which  by  the  census  included  not  only  the  land 
itself,  but  the  agricultural  implements,  the  stock, 
and  in  case  of  the  Southern  farmer  the  slaves, 
amounted  in  value  in  1860  to  about  .816,000,000,000. 
But  between  I860  and  1880  the  war  occurred;  the 
slaves  were  emancipated,  thus  depreciating  the 
American  Janners’  stock  to  the  tune  of  about  82;- 
000,000,000;  the  property  destroyed  by  the  two  armies 
amoirnted  to  about  as  much  more,  and,  therefore, 
by  the  logical  events  of  the  times,  four  billions  of 
his  eight  were  swept  away. 

But  the  total  value  of  what  was  left  had  become 
by  this  time  in  round  numbers  814,000, (X)0,000,  so 
that  the  twenty-five  per  cent,  accredited  to  him 
was  worth  §1,000,000,000  in  spite  of  these  losses ; 
and  in  1800,  the  total  value  being  increased  to  862,- 


109 


000,000,000,  ius  twenty  per  cent,  was  worth  §12,000,- 

000,000. 

Thus,  although  the  farmer’s  per  cent,  of  farm 
property  may  have  declined  from  50  in  1860  to  20 
in  1890,  he  is  richer  by  §4,000,000,000  now  than  then. 

Besides  this,  the  census  does  not  show  all  his 
increase,  for  while  it  shows  his  land,  stock,  and 
implements,  it  does  not  show  the  money  expended 
in  living  and  rearing  his  family  ; nor  does  it  show 
the  money  he  has  deposited  in  bank.  From  statis- 
tics furnished  by  the  banks  of  Kansas  it  is  shown 
that  the  farmers  of  that  State,  where  farm  distress 
is  reported  as  greatest,  own  fil'teen  per  cent,  of  all 
the  bank  stock  and  have  forty  per  cent,  of  the  de- 
posits in  the  banks  of  that  State,  'which  same, 
must  necessarily  appear  in  the  census  records,  ac- 
credited to  the  “insatiable  maw”  of  the  banks 
aforesaid. 

And  the  mortgages,  also,  are  often  grossly,  though 
innocently  misrepresented  by  the  census  reports, 
because  it  is  impossible  to  give  in  tables  all  the 
ramifications  of  red  tape. 

Now  I have  faithfully  given  you  an  account  of 
the  Republican  stewardship.  But  that  party  is  out 
of  power,  and  the  reverse  side  is  presented,  a side 
that  the  deluded  Populist  party  made  possible  by 
their  misrepresentations,  bearing  false  witness,  in 
defiance  of  the  decalogue.  Now  look  on  the  pic- 
ture ; it  is  not  a pretty  one. 

Free  trade,  merely  threatened,  has  obstructed  the 
avenues  of  business  to  such  an  extent  that  our  rev- 
jenues  have  gone  down  until  they  have  been  insuf- 
ificient  for  om-  exdenditures ; and  the  gold  reserve 
lof  $100,000,000,  so  religiously  kept  intact  by  the  Re- 
j publicans,  has  been  encroached  upon  to  meet  the 


110 


emergency ; and  although  3-50,000,000  worth  of  bonds 
have  been  sold  to  restore  it,  there  is  ;now  little 
more  than  that  sum  left  in  the  Treasury,  -$52,189,- 
500  of  it,  on  August  8,  1894 ; and  an  actual  deficit  of 
$69,000,000,  between  the  receipts  and  the  expendi- 
tures of  last  year,  left  over  for  the  future  to  square 
up. 

When  the  Republican  Party  laid  down  their 
charge  in  189-3,  there  was  $137,837,899.70  of  gold  coin 
in  the  Treasury,  and  $79,83-5,048.21  in  bullion.  A 
total  of  $217,672,947.91.  The  intact  gold  reserve,  and 
the  net  cash  balance  over  all  demand  liabilitie.s. 
being  $124,128,087.88.  The  public  debt,  both  interest- 
bearing  and  noninterest- bearing,  had  been  steadily 
reduced,  and  the  per  capita  circulation  steadily  in- 
creased. On  the  other  hand,  the  present  adminis- 
tration, according  to  their  last  report,  August  1, 
has  increased  the  public  debt  by  $67,143,-540.05 ; the 
gold — coin  and  bullion — has  dwindled  down  to 
$120,922,836,  with  a constantly  decreasing  per  capita 
circulation.  “Under  which  king,  Bezonian?  Speak, 

In  desperation  at  this  state  of  affairs,  the  present 
Congress  has  resorted  to  the  favorite  Democratic 
cmre-rule,  “ economy,”  and  while  everybody  who 
has  a claim  on  the  appropriations,  has  been  knifed 
most  scientifically,  especially  the  soldier,  the  De- 
partments have  kept  even  pace,  crippling  the  ser- 
vice by  turning  an  army  of  faithful  employes  into 
the  streets  to  join  the  multitude  of  starving  Ameri- 
can citizens,  made  tramps  by  our  closing  mills  and 
factories;  and  many  mutilated  soldiers  are  among 
them,  with  pensions  cutoff,  and  employment  taken 
away  in  the  land  they  risked  their  lives  to  save,  by 
the  very  people  whom  they  prtrvenfed  from  des- 
troying it.  Terily,  the  ways  of  a self-governing 


Ill 


people  are  passing-  strange,  for  many  soldiers  voted 
Democratic  in  the  last  election.  Blind  to  their  own 
interest,  the  gamin  in  the  street  could  teach  them  a 
lesson  ; for  when  he  wins  at  a game  of  marbles, 
•does  he  fork  over  his  trophy  to  the  vanquished 
foe?  Not  much. 

The  Democrats  claim  to  have  saved  on  the  ap- 
priations  for  1895  the  neat  sum  of  ^28,835,989.70  over 
the  last  session  of  the  last  Congress.  Now  let  us 
see  just  how  they  saved  it.  First  and  foremost,  the 
jsoldiers — always  first  to  be  skinned  by  the  Deni- 
locrats — have  had  their  pensions  reduced  to  the  tune 
lof  ^29,099,504.85,  just  $263,515.15  more  than  the  whole 
saving. 

And  last  year  we  had  the  World’s  Fair  and  the 
Census  lioth  on  our  hands,  the  two  aggregating 
4,621,500. 

I So,  if  we  leave  out  these  three  items,  these 
amous  economists  have  actually  increased  the  ap- 
i>ropriations,  after  hampering  many  of  the  dc- 
(artments  by  innumerable  discharges,  reducing 
he  salaries  of  many  of  those  left,  and  at  the  same 
me  increasing  their  burden  already  heavy,  by  the 
stra  work  thus  made.  A lot  of  mill  hands  would 
Tike  for  far  less  provocation.  And  yet  there  is  a 
Bficiency  left  of  $29,994,471.20,  which  will  have  to 
■ 3 made  up  next  session — aftei'  the  election  is 
n 'fely  over. 

-n  But  while  the  “small  fry”  of  the  departments 
ive  been  reduced-  and  discharged  by  hundreds, 
“ Id  the  soldiers  cheated  out  of  their  pensions,  and 
tfi  bile  the  “ great  unwashed  ” have  again  thought 
' immatefial  to  provide  for  the  disposal  of  the 
Irbage  of  om-  capital  city,  that  is  even  now  crying 
ito  Heaven,  with  a very  loud  odor,  many  of  the 


112 


,/ 

oliiciiils,  iilready  well  provided  for,  have  been 
luindsoinolj'  increased  to  one,  two,  and  three  thou- 
sand more  per  annum. 

All  these  things  show  who  are  the  true  friends 
^^o  the  working  man,  the  soldier,  and  the  country 
at  large ; and  if  those  who  have  been  seeking  aid 
through  the  aimless  and  misguided  Populist  party, 
and  thus  helping  destroy  the  friends  who  have 
never  yet  failed  them,  will  view  the  situation  in  an 
unprejudiced  manner,  they  will  vote  the  Republi- 
can ticket  hereafter. 


What  General  J.  S.  Clahkson  says  about  it; 
t is  a serions  and  continuing  party  mistake  that  your  sped- 
3 for  the  Emery  malarias  and  miasmas  have  not  been  printed 

I circulated  all  over  the  West  and  South  for  two  years.  The 
iiery  works  have  done,  and  are  constantly  doing  serious 
nage,  and  leading  away  honest  but  superficial  Ecpublicans. 
5 puts  sorrow  and  tears  and  emotion  in  all  she  says,  and  lies 
il  in  that  way  are  always  influential  over  liysterical  and  im- 
Issible  people.  A better  book,  more  sensibly  written  would 
Wily  do  far  less  harm  than  this  emotional  and  skyrockety 

•k.  Its  circulation  is  still  kept  up,  and  I have  myself 
Qd  several  good  people  in  the  West,  who  were  carried  away 

II  its  sophistries — and  saying;  These  charges  must  be  true 
In  the  author  herself  goes  into  tears  when  compelled  by 
|h  and  duty  to  auake  them.  She  seeks  and  finds  the  sym- 
|.etic  side  in  honest  people,  and  the  sensational  in  others, 
■makes  many  converts,  and  disenchants  many  honest  Re- 
licans  who  are  down  in  their  luck,  and  anxious  for  some 
Ito  pity  them. 

lur  work  has  good  heart  as  any  article  ever  had,  and  good 
I;  besides,  and  overthrows  in  fair  yet  thorough  manner  all 
false  works  of  her  sophistries  and  falsehoods,  tears  and  all. 
lie  who  have  read  her,  would  the  more  eagerly  read  you. 
iae  else  has  grasped  the  details,  arraj’’cd  the  facts,  and 
I nstrated  both  the  wisdom  and  the  kindness  of  Republican 
liples  and  their  views  as  you  have.  It  is  improvidence  in 
la  party  not  to  print  and  circulate  it  broadcast, 
luarter  of  a million  of  your  books  ought  to  go  into  the 
Ithis  fall  and  winter. 

Idiu  Senator  Charles  F.  Manderson  : 

lartily  concur  in  the  foregoing  letter  of  General  Clark- 
1“  The  Story  of  Hercules,  or  the  Truth  About  the  Finan- 
liglslation  of  the  Republican  Party,”  £♦  told  so  clearly 
■telllgently  by  Mrs.  Burke,  is  such  that  it  should  be  in 
Inds  of  every  voter  in  sections  of  the  country  where  the 
les  and  the  misrepresentations  of  the  Populists  have 
■root.  I have  purchased  a number  of  them  for  circula- 
1 my  own  section,  and  believe  they  will  prove  to  be  of 
value. 

I'ord  from  Senator  William  B.  Allison  : 

Ik  your  book  will  be  a valuable  contribution  to  the 
Ign  literature. 

I also  from  Senator  John  Sherman: 

Iwork  will  he  of  very  great  value  in  the  West,  where 
*8  of  Mrs.  Emery  seem  to  prevail. 


